Tweet
Left turns fuel price heat on UPA
Slamming the UPA Government for repeated hike in petrol and fuel prices, the Left parties on Friday demanded the Centre to scrap the dubious pricing system based on the “hoax method” called under-recovery and urged the masses for a united protest against the “anti-people” policy. The CPI(M) pointed to the contrasting stands of the UPA Government on under-recoveries vis-a-vis petrol price hike and 2G spectrum scam.
“Under-recovery is a notional figure, and has got no link with the actual loss of Oil Marketing Companies. Still, the Government has been trying to recover the desired price from common man based on the notional figure of under recoveries which is being projected as Rs. 70,000 to 1 lakh crore by Petroleum Ministry," CPI(M) leader and former MP Dipankar Mukherjee said in his letter to the Prime Minister.
“Inexplicably in the case of 2G spectrum pricing, the revenue loss arrived at by CAG is being brushed aside as notional loss and not the actual loss and no effort is being made to recover the same. In the case of 2G spectrum price you also desired that pricing should be through auction," he maintained adding the Petroleum Ministry's fortnightly statement on under-recoveries on petroleum products was not a rational or ethical practice.
Alleging that the government has once again displayed its "shocking callousness" at the plight of the people, the CPI(M) politburo, for its part, said: "The government's deregulation of petrol pricing is responsible for the fuelling of the price hike of essential commodities and inflation. The hoax of the pricing according to the market has been exposed as the international oil prices have fallen considerably in the recent period.”
It pointed out that the price hike was announced on the same day when food inflation rate touched 12.21 per cent.
Mukherjee pointed out that the 'desired price' is obviously as desired by OMCs and also the private oil companies links with several elements like 'Free on Board Price' of diesel as quoted in Gulf market, Ocean freight, Insurance, ocean loss, port charges. Customs duty, Refinery transfer price, Inland freight and delivery charge and Marketing cost including marketing margin.
"Desired price is clearly based on the notional price at which diesel would have been imported in the country and not on their actual, ex-refinery price, based on crude oil plus refining cost. This is in spite of the fact India has abundant refining capacity and hardly 2% to 3% diesel was imported for domestic consumption in 2010-11. The desired price will naturally vary on the basis of changes in the elements, enumerated above,” he said.
CPI general secretary AB Bardhan said, "It is yet another live example of anti-people policy pursued by the UPA government at the Centre." This had been done despite the trends of fluctuations of prices of petroleum products in the international market.
Slamming the UPA Government for repeated hike in petrol and fuel prices, the Left parties on Friday demanded the Centre to scrap the dubious pricing system based on the “hoax method” called under-recovery and urged the masses for a united protest against the “anti-people” policy. The CPI(M) pointed to the contrasting stands of the UPA Government on under-recoveries vis-a-vis petrol price hike and 2G spectrum scam.
“Under-recovery is a notional figure, and has got no link with the actual loss of Oil Marketing Companies. Still, the Government has been trying to recover the desired price from common man based on the notional figure of under recoveries which is being projected as Rs. 70,000 to 1 lakh crore by Petroleum Ministry," CPI(M) leader and former MP Dipankar Mukherjee said in his letter to the Prime Minister.
“Inexplicably in the case of 2G spectrum pricing, the revenue loss arrived at by CAG is being brushed aside as notional loss and not the actual loss and no effort is being made to recover the same. In the case of 2G spectrum price you also desired that pricing should be through auction," he maintained adding the Petroleum Ministry's fortnightly statement on under-recoveries on petroleum products was not a rational or ethical practice.
Alleging that the government has once again displayed its "shocking callousness" at the plight of the people, the CPI(M) politburo, for its part, said: "The government's deregulation of petrol pricing is responsible for the fuelling of the price hike of essential commodities and inflation. The hoax of the pricing according to the market has been exposed as the international oil prices have fallen considerably in the recent period.”
It pointed out that the price hike was announced on the same day when food inflation rate touched 12.21 per cent.
Mukherjee pointed out that the 'desired price' is obviously as desired by OMCs and also the private oil companies links with several elements like 'Free on Board Price' of diesel as quoted in Gulf market, Ocean freight, Insurance, ocean loss, port charges. Customs duty, Refinery transfer price, Inland freight and delivery charge and Marketing cost including marketing margin.
"Desired price is clearly based on the notional price at which diesel would have been imported in the country and not on their actual, ex-refinery price, based on crude oil plus refining cost. This is in spite of the fact India has abundant refining capacity and hardly 2% to 3% diesel was imported for domestic consumption in 2010-11. The desired price will naturally vary on the basis of changes in the elements, enumerated above,” he said.
CPI general secretary AB Bardhan said, "It is yet another live example of anti-people policy pursued by the UPA government at the Centre." This had been done despite the trends of fluctuations of prices of petroleum products in the international market.
