People's Democracy
(Weekly
Organ of the Communist Party of India (Marxist)
No. 26
June 26, 2005
(Weekly
Organ of the Communist Party of India (Marxist)
|
Vol.
XXIX
No. 26 June 26, 2005 |
The
Left Parties – the Communist Party of India (Marxist), Communist Party of
India, Revolutionary Socialist Party and the Forward Bloc – issued the
following statement on June 20, 2005.
THE
Left parties strongly oppose the increase in the prices of petroleum products
announced by the government. By this hike petrol has been increased by Rs 2.50
per litre and diesel by Rs 2 per litre. This price hike comes in the wake of
three price hikes in petroleum products in the past one year. This has imposed
an added burden on the people. It will affect the farmers and increase the cost
of living for those who rely on transportation for pursuing their daily work and
activities. The price increase in diesel in particular will be inflationary and
have a cascading effect on prices of all commodities.
The
government’s justification for this price increase is misplaced. While it is
true that international oil prices have been rising, the government in the
budget itself changed excise duties which led to an added burden of Rs 1.70 per
litre for petrol and Rs 1.15 per litre for diesel. The road cess of Rs 1.50 has
been increased by 50 paise to Rs 2.00
The
Left parties had given the following alternative proposals on how to avert the
price hike:
a)
cancelling of additional
cess of 50 paise per litre for highways, b) change in excise duty so that
it does not lead to retail price hike, c) doing away with import parity in
product price, d) formation of price stabilisation fund to meet the fluctuation
of global crude price with the cess collected on indigenous crude amounting to
Rs 5400 crore per annum, and e) review of duty draw back payment to exporters of
petroleum products by private refineries.
It
is unfortunate that the government has not taken up these proposals to avert the
price hike. The Left parties while firmly opposing the increase have decided to
mobilise the people and launch a vigorous protest all over the country.
We
call upon the people all over the country to join together to register their
strong protest by coming out into the streets and demonstrate their opposition
on June 28.
The Left parties call upon the government to reverse its decision and take the measures which can absorb the burden of the increased international oil prices.
