Public fury forces India to rethink petrol hike
Government hints at partial rollback after widespread protests
New Delhi: The Indian government yesterday indicated that it may partially roll back the steep hike in petrol prices after angry citizens and politicians staged protests in various cities.
A final decision is expected after Petroleum Minister S. Jaipal Reddy returns from Turkmenistan. There were indications that the government may announce a rollback of Rs2 to Rs2.50 per litre.
The unprecedented increase of Rs7.50 per litre — the steepest hike in 10 years — was announced by government-owned petroleum companies on Wednesday.
The government justified the increase saying that the depreciating rupee has increased costs of imports with crude oil price rising on international markets.
The Congress party, which heads the ruling United Progressive Alliance (UPA), on Wednesday said it had nothing to do with the hike claiming that it was neither informed nor consulted.
"We hope the government can find a way to mitigate the burden on the common man. Some state governments have already started making efforts," Congress spokesman Manish Tiwari said yesterday.
India has not raised diesel prices since July 2011.
Petrol, or gasoline, is not subsidised by the government, but state refiners, which dominate the market, have kept prices on hold despite an increase in international crude prices.
Diesel, kerosene and liquified petroleum gas are all fuels used by the poor and by public transport. They are subsidised and account for a hefty portion of India's ballooning fiscal deficit.
The government's rethinking on the hike follows a call for a countrywide strike by the opposition National Democratic Alliance (NDA) on May 31. Congress members and supporters also joined the chorus in demanding a petrol price rollback.
Protesters in the states of Andhra Pradesh, Bihar, Odisha, Jammu and Kashmir and Kerala yesterday burnt effigies of Prime Minister Manmohan Singh, set vehicles on fire and held placards reading ‘Bring down petrol prices'. In some areas, effigies of Sonia Gandhi, Congress chief, were also set ablaze.
