People's Democracy

The four Left parties --- Communist Party of India (Marxist), Communist Party of India, All India Forward Bloc and Revolutionary Socialist Party --- have issued the following statement from New Delhi on June 25, 2010.

THE decision of the UPA government to inflict a steep rise in the prices of petrol, diesel, kerosene oil and cooking gas is a cruel blow against the people who are already suffering due to the runaway increase in the prices of food and essential commodities. The price of petrol has gone up by Rs 3.50 per litre, diesel by Rs 2 per litre, kerosene oil by Rs 3 per litre and cooking gas by Rs 35 per cylinder.  

This callous decision of the government has come at a time when the food inflation rate is around 17 per cent and the general inflation rate has reached double digits. India has the dubious distinction of having the highest rate of consumer price inflation in the world.  

The UPA government has decided to deregulate the price of petrol and leave it to the market to determine. Going by the Kirit Parikh report, the government is going to decontrol the prices of all petroleum products, including diesel.  This is going to prove disastrous for the economy and the country.  

The government is giving false arguments to justify these measures. The prices of petrol and diesel were increased by Rs 3 per litre only three months ago at the time of the union budget. International oil prices have not risen substantially in this period. Neither is the government prepared to  rationalise the taxation structure on petroleum products which is adding to a price of petrol and diesel in a large measure.  

It is a myth that such a step is being taken to protect the public sector companies from under-recoveries. The so-called under-recoveries are entirely based on notional prices calculated without any reference to the actual cost of production. In fact, the deregulation is only to help private companies who withdrew from the market because of the government price controls. Now they will be free to enter the market to make profits.

By deregulating petrol prices, the government has opened the way for continuous increases in the prices of petrol. By increasing the price of diesel and kerosene oil, the farmers and the poorer sections are going to be badly hit. The LPG increase will further burden the middle classes.

The Congress-led government has shown its callous and anti-people character by these measures.

The Left parties demand the immediate scrapping of the price increases.   They call upon all their units to jointly launch protests against these hikes.  

Signatories to the statement were Prakash Karat, A B Bardhan, Debabrata Biswas and T J Chandrachoodan, general secretaries of the CPI(M), CPI, AIFB and RSP respectively.