[Marxistindia] Against deregulation of Diesel Prices

[news from the cpi(m)]

October 20, 2014

 

Press Statement

 

The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:

 

Against Deregulation of Diesel Prices

 

The CPI(M) condemns the deregulation of diesel pricing. This is nothing but
an abdication of the responsibility of the government to control and
regulate the prices of a crucial item of fuel which has a direct impact on
the prices of all essential commodities.

 

The deregulation has been announced along with a reduction in the retail
price of diesel following a sharp decline in the price of crude oil in the
international market. However, it is absolutely wrong to link the
deregulation to the reduced diesel price. Given the volatility of crude oil
prices in the international market, the rise in prices of crude oil is much
more than the occasional drop. After deregulation when the international
prices rise, there will be a consequent increase in the prices of diesel in
India. 

 

The Modi government has completed the dismantling of the administered
pricing mechanism for petroleum products and introduced the import parity
pricing in line with the prices of finished products in the international
market. This will only help the oil companies including the private ones. 

 

The CPI(M) demands that the government restore the administered pricing
mechanism and a cost plus pricing method which will lower the domestic price
of petrol and diesel.

 

Gas Pricing

 

The Modi government has not followed the UPA government in accepting the
Rangarajan Committee faulty prescription for doubling of the gas prices. It
has increased the price of gas to $ 5.61 from the existing $ 4.2. However,
it is reported that there is a provision for premium for gas explored from
deep-sea fields and for revision of prices every six months. This raises the
question whether more increases in gas prices are in the offing. 

 

The CPI(M) reiterates that the pricing system should not be based on the
average of prices ruling in international hubs without any reference to the
domestic cost of production of gas. Under this, any increase in gas pricing
means a windfall gain to gas producers and increasing burden on the people.

 

Delivery of Subsidised LPG

 

The announcement of cash transfer scheme through banks for delivery of
subsidy for LPG cylinders will lead to the exclusion of a substantial
section of the people entitled for the benefit of the LPG subsidy. A large
number of ordinary people still do not have access to banking services
despite the much touted "jan dhan yojana".

 

 

 

Central Committee

Communist Party of India (Marxist)

A.K. Gopalan Bhawan

27-29, Bhai Vir Singh Marg, Gole Market

New Delhi 110 001

 

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