People's Democracy

CITU Demands Reduction In Petro Prices 

THE Centre of Indian Trade Unions (CITU) has demanded reduction in the prices of petroleum products in the wake of steep fall in global crude prices by 20 per cent. As is known, during the recent past the government frequently hiked the prices of petrol and diesel because of steep rise in international crude prices. However, after the fall of crude price, the government reduced the price of aviation fuel (ATF) by 8 per cent but there has been no corresponding reduction in the prices of petroleum products.  

The CITU in a statement on October 5, 2006 observed that apart from air passengers, the common man also deserved a reduction in the prices of petrol and diesel, which has cascading effect on the prices of essential commodities. The finance minister’s logic that only subsidy payout will reduce because of fall in global oil prices and consumers should not get any relief is not at all convincing, stated the CITU. It demanded that in view of the reduced subsidy payout, the finance ministry should immediately reduce excise duty on petrol and diesel by Rs 1 per litre as proposed by the petroleum ministry. “The CITU finds no plausible reason as to why in spite of government’s repeated anxiety on financial health of oil PSUs, it chose to get as high a dividend as Rs 6,417 crore from ONGC and Rs 1,460 crore from IOC, a part of which could have been reinvested in petroleum sector”.  

The CITU called upon the finance minister to match his concern for reinvestment in public sector oil companies by accepting the recommendation of the parliamentary standing committee on petroleum and natural gas to divert the cess amount of Rs 7,500 crore collected from ONGC and OIL to petroleum ministry which can be used as Price Stabilisation Fund to take care of price fluctuation. The CITU also demanded immediate rollback of diesel and petrol price to pre-June 2006 position so that the fall in global oil price brings relief to the Aam Admi and not succour to the finance minister’s fiscal management at the cost of common man. 

(INN)