The political temperature in the capital is rising with opposition parties launching a scathing attack on the ruling government warning of an imminent and ‘crushing’ hike in petrol and diesel prices. Senior opposition leaders alleged that the government betrayed the common man in the name of fuel price cuts only to serve electoral interests. “The government’s utility for the voter is over” following the recent voting stages and it is preparing to unload massive under-recoveries on the public, the opposition says.
The uproar comes after reports that state-run Oil Marketing Companies (OMCs) are incurring losses of ₹30,000 crore on an average per month due to the ongoing crisis in West Asia and the rising global crude prices. Opposition spokespeople said that although the Prime Minister has recently advised citizens to work from home and reduce travel, such advisories are just a smokescreen to cover up an impending fiscal failure. One leader said the anticipated price revision of Rs 5 to Rs 10 a litre was a “post-poll tax” on the middle class and the government was waiting for the last vote to be cast before the true cost of its energy policy was revealed.
With Brent crude hovering around $ 105 a barrel, the opposition has demanded an immediate further cut in central excise duties and bringing petroleum products under the GST regime to provide permanent relief. A rise in fuel prices at this juncture would set off a “domino effect” in the prices of essential commodities and transport, squeezing household budgets already squeezed by inflation, they warned. The government says the price changes are needed to save the national oil companies from collapse, but the opposition has vowed to take the protest to the streets, saying the impending hike is a clear sign of the administration’s “exhausted utility” and lack of empathy for the rural and urban poor.
