People's Democracy
(Weekly Organ of the Communist Party of India (Marxist)
No. 27
July 07, 2013
|
Vol. XXXVII
No. 27 July 07, 2013 |
Gas Price Hike The Polit Bureau of the
Communist Party of THE Polit Bureau of the CPI(M)
strongly opposes the
cabinet decision to double the price of natural gas, a
major input for the
production of fertilisers
and power,
from 4.2 dollars to 8 dollars per mmbtu (million metric
British thermal units).
This will have a cascading impact of increasing the
prices and burdening the
common people, while the main benefit will accrue to a
single corporate house. Reliance, which is virtually
blackmailing the country
by keeping the production of natural gas in the KG-D6
gas basin below the
stated target till the price is increased, will be the
main beneficiary. It is
estimated that every dollar increase in gas price will
increase Reliance’s
profits by at least 74 million dollars. The hike is irrational even in
comparison to the gas
exporting countries where
the price of
domestic gas is much lower. For example, in Gulf
countries, the price is only
one dollar per mmbtu, in The additional subsidy the
government would have to
bear at the present prices of fertilisers and gas based
power is estimated to
be to the extent of 71,250 crore rupees for a five year
period. This
government, which claims that it does not have the funds
to ensure a
universalised food security system, is prepared to
subsidise the profits of a powerful
corporate house. The government will pass on
much of this burden to the
common people. Farmers will have to pay more for
fertilizers; the price of CNG
gas used by public transport in many cities will also be
hiked as will
electricity tariffs. Natural gas is a natural
resource which belongs to the
country. It cannot be arbitrarily handed over for super
profits to corporates.
The CPI(M) demands that the decision for the price
increase should be kept in
abeyance and fully discussed in parliament.
