India reacts strongly to fuel price hike

New Delhi June 25 (Calcutta Tube / IBNS): The entire India reacted strongly against the hike in the cost of LPG, diesel and kerosene that came into effect from Friday night while Opposition political parties hit the streets and vowed to unleash a bigger protest.

The Congress-led Central government on Friday approved a nearly 8 percent price hike for diesel prices, after months of stalling, earning  jabs from allies and opponents alike.

Diesel was increased by Rs 3 per litre, and kerosene by Rs 2, while LPG prices were knocked up by Rs 50 per cylinder, as the government tried to ease its subsidy burden but added more pressure to stubborn inflationary pressures.

The government also abolished customs duty on all crude oil and all petroleum products while the excise duty on diesel has been reduced to Rs 2 from Rs 4.60 per litre, a move that will result in a revenue loss of Rs 49,000 crore or the current financial year.

The entire India reacted strongly to this increase in the price of these essential commodities by the centre on Saturday.

“It was a shock for us. It is becoming difficult for us to manage our daily households now in this process,” Ramesh Chand, a businessman from Lucknow commented.

“This has now become a habit of the centre to increase the cost of these essential commodities whenevver and where ever they want. They have stopped thinking abput us and our benefits. It is becoming difficult for us to manage the monthly budget these days,” Tumita Hazra, a house wife from Kolkata, said.
According to Patna-based IT professional Arijit Banerjee, the move effects every communityy in India.
“But I feel that the increase of kerosene will effect the not so well of  people very badly. The government should consider it and think of a rollback,”  Banerjee said.

Trinamool Congress chief Mamata Banerjee, the biggest ally of the Congress at the Centre which leads the United Progressive Alliance (UPA) coalition government, said she did not support the price hike.

On Saturday she announced cut in the cess on LPG prices, thus reducing the prices of LPG cylinders by Rs 16 in the state.

Now the price of an LPG cylinder would cost Rs 401.10 instead of Rs 417.10 after the central hike.

The cess will remain on diesel and kerosene, however.

“They have raised price of petrol several times. Not once, many times in one year. Diesel is also needed for farming. The government must think many times before raising price of diesel, gas and kerosene. We (Trinamool Congress) are not supporting this price rise. We are with the people,” West Bengal’s newly elected Chief Minister said.

Reacting to this move by the Chief Mnister the people of West Bengal appreciated her decision.

“We expect a lot from her and till now she has lived to her words. Her decision of reducing LPG cylinder prices in Kolkata is surely appreciable,” Ratna Roy, a housewife from Kolkata said.

“This was relly a nice move from tour Chief Minister. I am thankful that she is thinking about us while centre has stopped the trouble of thinking about our problems in this issue,” Pranab Dey a student from the city said.

Meanwhile, the Bharatiya Janata  Party (BJP) and the Left parties are holding nationwide protest to protest the fuel hike while in Lucknow the Samajwadi Party members took to streets.
In New Delhi, the BJP workers fought pitched battle with the police during a protest when the cops used water canon to disperse the mob of protesters, including women.

“This increase will have a cascading effect and further fuel inflation. The government is no more for aam aadmi [common people],” said  BJP Spokerperson Nirmala Sitharaman.