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Will UPA Hike Fuel Price Again?

Will UPA Hike Fuel Price Again?

posted on Nov 5, 2011 @ 2:27PM

As Prime Minister Manmohan Singh returned from the G20 summit amid the petrol price hike storm, Finance Minister Pranab Mukherjee hoped to settle things down. He said that he will brief the Prime Minister about the current situation and hopes to sort out differences with Trinamool Congress Chief and West Bengal Chief Minister Mamata Banerjee. The UPA government came under attack from Mamata on Friday over Thursday's hike in petrol prices. Mamata said that the TMC wasn't informed or consulted about the petrol price rise. Mamata virtually threatened to pull out from the UPA government.

 

She said that the Trinamool was never consulted before Thursday's price hike. "If fuel price hike is linked to global crude prices then why doesn't the price come down when crude prices are low," she questioned. Adding that the UPA never pays heed to the Trinamool's views, Mamata said, "The Congress party is dependent on allies support whereas the Trinamool has absolute majority in Bengal." She, however, said that though she is angry, she is not blackmailing the UPA over petrol price rise. She said that she will will meet the Prime Minister after he returns from Cannes, most likely on November 8 or November 9. Trinamool Congress Rajya Sabha member Derek O'Brien said that the ministers have given in their resignation letters over petrol price hike and that is lying with Mamata Banerjee.



However, the Prime Minister remained firm on the fuel price hike and favoured more deregulation of prices. Speaking at the G20 summit in Cannes, Manmohan Singh made it clear that that the government should move more and more in the direction of deregulation of fuel prices. He also said that he has no hesitation in saying that markets must find their own levels. The Prime Minister, though, conceded that food inflation is a problem but said it's also a sign of growing prosperity.

 

 

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