In a yet another blow to the common man, who is already reeling under the higher fuel prices, the government has given a shock by hiking the prices of the diesel by Rs.5 per litre. The hike comes in effect from midnight of Thursday.
This increase in Diesel signifies a 12 percent hike to the existing prices.
The prices of Petrol and PDS kerosene have been left un-changed.
Only 6 subsidized LPG cylinders per year
The government has also introduced restrictions on the subsidized LPG cylinder policy.
The number of subsidized cylinders is restricted to 6 cylinders per family per year.
This means that any additional cylinder required by the people after the prescribed quota of six cylinders, have to be purchased at a much higher price than the current prices of the LPG cylinder, which are subsidized by the government.
The move has come as the cabinet committee on political affairs approved the hike in Diesel to rein in the fiscal deficit. The committee held a meeting at the Prime Minister’s residence.
Trinamool Congress and DMK oppose
Even the UPA allies, including the Trinamool Congress have opposed this steep rise in the Diesel price. Kunal Ghosh, TMC leader told a TV channel that the TMC was not consulted before the government took this decision. He also told that Mamatha Banerjee and the whole of TMC was under a great shock after hearing the news from the media.
Even the DMK was reported as opposing this move from the government.
BJP opposes strongly. Demands PM’s resignation
The opposition BJP has come out strongly criticizing the decision of a steep hike in the prices of Diesel. Top leaders of the BJP have condemned the government on imposing this fresh burden on the common man. Former Union Minister Ananth Kumar has said that the BJP is in strong opposition to this move, and demanded that the Prime Minister Manmohan Singh resign from his post.
Oil companies welcome the move
State-run oil marketing companies are losing Rs 550 crore everyday on under-recoveries as a result of higher crude prices in the global markets. They make a loss of Rs 19 per litre on diesel sales, Rs 32.7 per litre on kerosene sales, and Rs 347 per cylinder on cooking gas sales every day.