(Weekly Organ of the Communist Party of India (Marxist)
May 30, 2010
Govtís Motivated Decision to Benefit RIL
Polit Bureau of the Communist Party of
THE Communist Party of India (Marxist) strongly opposes the decision of the government to increase the price of gas produced by the public sector companies from 1.8 dollars per unit to 4.2 dollars per unit. This doubling of the price in the Administered Price Mechanism (APM) has been done to bring it in line with the price approved by the government for the gas produced by the Reliance India Ltd (RIL).
The government decision seems motivated to ensure the market for RILís gas since the lower priced gas of the public sector enterprises would have been more attractive for the power and fertiliser producers.
By this step the additional burden of Rs. 8000 crore will be passed on to the consumers of power and fertilisers. The transport industry using CNG will also be affected.
The doubling of the APM gas price comes at a time when the country is witnessing high inflation and price rise. The benefits accruing to one corporate group seems more important for the government than public interest.