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Congress defends diesel price hike

Ludhiana, Sep 14 (ANI): Congress leader Manish Tewari on Friday defended the government’s decision to hike the price of diesel by Rupees five a litre, saying that this increase was essential for the economy.

“No government takes such decisions happily, we are increasing diesel price only because it is essential for the economy. A sensitive government when it takes tough decision doesn’t take it with glee; this increase in diesel price had to be done because of global reasons,” Tewari told media here.

Bharatiya Janata Party (BJP) leader M. Venkaiah Naidu criticized the central government over the hike in diesel prices, saying it will further hit the common man and demanded an immediate rollback.

“The decision taken by the government is totally anti-people, anti-common man. We will not accept it and demand its rollback,” Naidu said.

“Limiting the subsidised gas cylinders would affect poor and middle class households. Each family has to bear an addition burden of 742 rupees each month . That’s a great burden. It is a direct blow to common man of the country. We will not accept it. We will oppose it,” he added.

The Government has increased the price of diesel by five rupees per litre. However, there has been no increase in prices of petrol and PDS kerosene.

The Cabinet Committee on Political Affairs (CCPA), in its meeting chaired by the Prime Minister Dr. Manmohan Singh yesterday also decided to restrict the supply of subsidized LPG cylinders to each consumer to six per year. The new prices came into effect from last midnight.

The revised Retail Selling Price of Diesel in Delhi is approximately 47 rupees per litre, however, branded Diesel will be sold at the market rate.

An official release said that the subsidized cylinders will continue to be available at 399 rupees per cylinder in Delhi. The market rate of LPG cylinders at non-subsidized rates will be notified by Oil Marketing Companies, on a monthly basis.

The above decisions will reduce the under-recovery of companies by about 20,300 crore rupees. The under-recovery for 2012-13 will be about 1,67,000 crore rupees. (ANI)