People's Democracy

         Review Duty Structure On Oil: Left Parties

THE four Left parties – CPI(M), CPI, RSP and Forward Bloc – met in New Delhi on July 26, 2004 and issued the following statement.

THE limited freedom given to the oil PSUs to fix all auto fuel prices against the fluctuations in global crude oil prices is a move that naturally follows the dismantling of the administrative price mechanism (APM) in the oil sector by the previous government. 

Such freedom, however, cannot be exercised to continuously shift the burden of any increase in the international crude prices on to the consumers automatically. The oil PSUs, whose accumulated profits have soared since the dismantling of the APM should also share the burden. Likewise, the benefit of lower international prices should invariably be passed on to the consumer rather than shoring up the profits of the oil PSUs. 

Further, the Left parties ask the UPA government to bring forward the much-needed reforms in the duty structure of the petroleum products in order to give relief to the people. The prices of petroleum products in India are unusually high because of the high import and excise duties.  The UPA government is committed to review this duty structure. This should be done at the earliest keeping in mind the need to provide relief to the people who are already suffering from periodic hikes in the prices. If such restructuring of the duty structure is done, then the much-talked about high levels of subsidies for certain petroleum products can also be scaled down. (INN)