Petrol Prices is cut @Rs. 1.85/ Liter

Discussion in 'Politics & Society' started by Ray, Nov 4, 2011.

  1. Ray

    Ray The Chairman Defence Professionals Moderator

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    Mamata Banerjee threatens to quit the UPA

    KOLKATA: The Trinamool Congress parliamentary party on Friday threatened to pull out of the government in protest against "repeated unilateral decisions" to raise petrol prices.

    Party chief Mamata Banerjee, however, kept the decision pending and requested Prime Minister Manmohan Singh for a meeting once he returns from his trip to Cannes.

    "Trinamool Congress ministers silenced in Union Cabinet and not heard," Mamata Banerjee said.

    Petrol price hike: Trinamool threatens to quit UPA govt, awaits PM's return - The Times of India
     
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  3. Galaxy

    Galaxy Elite Member Elite Member

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    Political drama as usual. 8)

    I hope pranav da stand with this decision and Mamta withdraw the support, Although highly unlikely.
     
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  4. Ray

    Ray The Chairman Defence Professionals Moderator

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    If fuel price hike continues we will withdraw support: Mamata Banerjee

    Trinamool Congress today threatened to pullout of UPA, but said that the final call after Prime Minister's return.

    Key UPA ally Mamata Banerjee directly targeted the UPA government over the fuel hike.

    Banerjee said "If hike continues we will withdraw our support."

    The Trinamool Congress ministers were silenced in Union and not heard, Banerjee said.

    She said that Why doesn't the fuel price come down when crude price are low?

    Banerjee said that they are accountable to the people andcan't tolerate this fuel price hike. We are not trying to blackmail the government. We have been insulted many times, we don't even have a room for us in parliament,"

    She will meet PM Manmohan Sighon November 8 or 9 when he returns from the G20 Summit.

    If fuel price hike continues we will withdraw support: Mamata Banerjee - India - DNA
     
  5. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    mamta way to go.MMS screwed the left and congress reaping the rewards
     
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  6. Ray

    Ray The Chairman Defence Professionals Moderator

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    Petrol prices: Mamata issues ultimatum; PM defends price hike and deregulation

    New Delhi: As the second petrol price hike in two months created talk of divorce within his government, the Prime Minister, who is at the G20 summit in Cannes, was firm.

    "The move to decontrol petrol prices is part of the process of the direction in which we should move," said Dr Manmohan Singh.

    "These are very sensitive areas, I have no hesitation in saying ultimately we must allow the markets to find their own level except for those commodities that are in the nature of semi-public goods. The direction of change is quite clear, we must move in the direction of decontrolling more and more prices."

    Arguing against subsidies, he said, "We cannot live beyond means and we have to recognize that money does not grow on trees. We have to get fiscal system in balance. If in the process we have to cut expenditure or cut susbidies, that's the only way you can manage your fiscal system."

    But as always, the economics came with a helping of politics.

    "Having said that," Dr Singh caveated, "what we should do at any moment of time is subject matter of political feasability. The timing is a matter which has to be carefully worked out. "

    Dr Singh's defense came 24 hours after petrol prices were increased by Rs. 1.82 a litre, the second raise in less than two months.

    The new prices kicked in at 12 am, leading to allegations of a "midnight massacre" by the Opposition.

    But it's the criticism from allies - especially Mamata Banerjee - that's hitting where it could really hurt. This afternoon in Kolkata, Ms Banerjee warned the Congress that she may have to opt out of the government over not just the new price but the manner in which it was introduced.

    Other allies like Sharad Pawar's Nationalist Conress Party (NCP) and Farooq Abudallah's National Conference said they had not been asked for their opinion. By the evening, even the Congress' Abhishek Manu Singhvi said the party hopes the government will provide a "healing touch" and find a way to diminish the Rs. 1.82 increase.

    Ms Banerjee met with her MPs this afternoon and then held a press conference where she said that her party had not been consulted about the hike, and that her MPs are willing to quit the UPA if they are excluded from decisions like this one which affect the common man. "There is no way our MPs can defend this to our people," she said. (Watch: Mamata warns government)

    Ms Banerjee said she will take a final call on her party's participation in the Cabinet and the government after she meets with the PM upon his return from the G20 summit .

    "The price hike may not affect the Centre or Delhi but it affects our people... we stand by the people," Ms Banerjee said, underscoring that the prices of fuel and products like cooking gas and kerosene have been raised 11 times in the last few months.

    "We don't want to blackmail anyone, but we have tolerated a lot," she warned. With her 18 Lok Sabha MPs, Ms Banerjee is the Congress' largest ally and an indispensable part of the UPA.

    She may have delivered that message with restraint - she is known for her impatience and short temper - but her point was not subtle. Underscoring that the Congress needs her and not the other way around, she said that she can run the government in West Bengal without the Congress' support, but her party is key in propping up the UPA at the Centre.

    Another key ally- the DMK - agreed with her about the Congress not including other parties in key decisions. "What Mamta says is correct. She has chosen to express her concern on lack of coordination within UPA," said the DMK's TR Baalu. His party's collaboration with the Congress has in any case been strained by the arrest of Kanimozhi, the daughter of the DMK president.

    The government had deregulated or freed petrol from all price controls last year. A visibly upset Finance Minister Pranab Mukherjee sought to make clear that nobody in the government should be held responsible. "Please remember this is a decontrolled item, and the companies maintain petrol prices."

    So far, petrol prices have been increased four times this year. They were last increased in September by Rs. 3.14. So now, in Delhi, petrol costs Rs. 68.64 as compared to Rs. 58.37 in January. Bangalore is hit the worst; it now pays Rs. 75.64 per litre.

    With so much heat on the issue, these state-owned oil companies that effected the Rs. 1.82 price hike yesterday, sought to present their case. Indian Oil CMD RS Batula said they had incurred huge losses because they are made to subsidize products like diesel, LPG and kerosene.

    "We understand that these price hikes are steep and inflation too is very high, but oil companies have incurred losses of Rs. 2,500 crores in the last seven months. If we continue to incur losses, either we'll produce less or then pass on the price hike to the consumer. We chose to keep supply of the product going. No organisation can continue to provide the product while making losses. The moment we see a respite in prices we will be happy to reduce prices, he said.

    Sources have said the three major state-owned oil companies - Indian Oil, HPCL and Bharat Petroleum - are discussing the possibility of a partial roll back.

    Opposition parties don't need to pull their punches and they have not. From Mayawati in UP to J Jayalalithaa in Tamil Nadu lashed out at the Centre for the new price hike. And the BJP fielded former Finance Minister Yashwant Sinha, armed with numbers. Mr Sinha amended his party's description of the price hike - this was not "midnight deceit," it was "midnight massacre", he said. If petrol was decontrolled he said, why had prices never been brought down yet, as had happened in neighbouring countries like Pakistan, he asked, flaying the government.


    Petrol prices: Mamata issues ultimatum; PM defends price hike and deregulation
     
  7. Ray

    Ray The Chairman Defence Professionals Moderator

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    Petrol price hike: Allies angry, Govt in a fix

    New Delhi: There is anger against the UPA for the frequent rise in petrol prices and now even the allies are beginning to make public their discontent.

    Trinamool Congress chief Mamata Banerjee virtually threatened to pull out if inflation was not tackled.

    The West Bengal Chief Minister made her displeasure known in no uncertain terms.

    After meeting her party MPs just hours after the midnight petrol price hike, Banerjee warned the UPA that any future inflation triggering decisions taken without consultations would have dire consequences for the government.

    "Our MPs have decided that they won’t tolerate another round of hikes, this is anti people. We will meet the PM when he returns between November 8-10," said Banerjee.

    While this may well be posturing from maverick Mamata, the danger signals are clearly visible for the UPA. Technically, the government can do little, as petrol prices are not determined by the government anymore.

    However, an upset Mamata, sulking DMK and annoyed NCP can make things difficult.

    "The government can do little, as prices are not determined by us," said Union Finance Minister Pranab Mukherjee.

    Meanwhile, another ally National Conference said that the price rise was a matter of concern.

    "The price rice is a matter of concern for all of us," said Farooq Abdullah.

    The Opposition, predictably, turned the screws on the UPA. Former finance minister Yashwant Sinha asked the UPA allies to decide whether they were with inflationary measures or were they with the Aam Aadmi.

    "I am appealing to countrymen to stop paying taxes against this government which is so insensitive," said Sinha.

    Over the last two Parliament sessions, price rise has been a huge talking point for parties. With winter session about to begin in just over two weeks, fire works over price rise could be seen yet again.

    Petrol price hike: Allies angry, Govt in a fix - Politics - Politics News - ibnlive
     
  8. Pintu

    Pintu New Member

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    Actually what I figure, the petrol prices are being hiked when the crude prices are high in the international market since we have to import most of our requirements but the hiked price does not tend to comedown even when crude prices are low in overseas ? Can anybody kindly help me to understand?

    Regards
     
  9. pmaitra

    pmaitra Moderator Moderator

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    Reminds me of Mamata protesting against George Fernandez and quitting the then BJP led coalition.

    BTW, petrol prices need to be hiked.
     
  10. Yusuf

    Yusuf GUARDIAN Administrator

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    The only thing under government control is tax. Both central and state governments don't want to let to of their cash cow. That's why no state got petrol under VAT and let it be separate entity. Excise, octroi, entry tax all adds up to about 38-40 rupees per litre. But then the government needs the additional revenue to give free lunches to farmers by waivin loans, giving subsidies and most importantly scam all the money into their pockets.So yes no hope here. Mamta is as good as the Left. God help us all.
     
  11. Galaxy

    Galaxy Elite Member Elite Member

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    Crude Oil is stable now and trading around 90$/barrel (+/- 10%) for last 4-5 months. Price hike is due to dollar.

    Did GoI hedged $ when it was trading around 43 few months back ?? May be not enough or not at all as companies won't facing 15% loss if done accordingly.
     
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  12. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Didi has too much to loose by quitting Govt. Cong will go out of its line to intensify maoists & other insurgents to screw WB. Just saying.

    PS: LPG subsidy will also be withdrawn soon. What then? :laugh:
     
  13. Pintu

    Pintu New Member

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    Right crude goes like, $ 94.04 /barrel that's equivalent to Rs. 29.07 /litre, at present, now there are other cost to make it ready to use. So the cost goes up after its refining , etc. and import cost not withstanding the rising greenback.

    Regards
     
  14. Pintu

    Pintu New Member

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  15. The Messiah

    The Messiah Bow Before Me! Elite Member

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    Well market forces dictate a price hike. Subsidizing and all that are evil socialist practices remember.
     
  16. trackwhack

    trackwhack Tihar Jail Banned

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    You guys are missing the point. Mamta needs to break away. She is looking for a reason to take down the centre so that early polls can be held.

    If polls are held now, since she is still riding the assembly elections high, she will end up probably clean sweeping all 42 seats and easily 35+. If she waits till 2014, the people would have realized that she has made squat of a difference and she will end up winning maybe 20 if she is lucky.

    So get ready for early polls. 35 seats is like 7% of the Lok Sabha. God save our country.

    Think like a politician and all will make sense.
     
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  17. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    the best thing about this price rise is its coming under the backdrop of global crude prices easing out significantly from the highs seen during the peak of libya attack.

    as brinda karat said, why cant the government tax the companies which are exporting petro products, which are walking away pocketing huge profits!

    but then mukesh ambani was famously quoted by ABV's son in law as suggesting, "congress to ab apani dukaan hai", so seems to be the case!
     
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  18. SPIEZ

    SPIEZ Senior Member Senior Member

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    Petrol price hike yet again? I fully support Mamata De in this. How longdoes the "comman man" have to suffer ?
     
  19. Daredevil

    Daredevil On Vacation! Administrator

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    Why are the middle class people are being squeezed from every direction be it petrol hikes or high inflation while everyone else gets free dole using the tax money payed by the middle class. Why are they treated in a shabby manner, taking their money but not providing any services or decent living standards. Almost all edible and non-edible consumables rates are touching the roof and most of the earnings are being spent on the food items with very little being left for savings which is not enough to buy a decent house or plot because sky high realty prices.
     
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  20. debasree

    debasree Regular Member

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    why the castomer will suffer due to the volatillity of currency market ,there should be a shield to protect them.
     
  21. sob

    sob Moderator Moderator

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    Every hike in the price of Petrol, increases the flow of taxes in the Central and State Govt's coffers. It is left to the common man to pay as much as 50 to 60% tax on these products. Mamta Di will never speak on this, she will never mention the huge tax burden that her Govt. is imposing on the people of Bengal. It is convenient to target the central Govt.

    It is time for people in TN,WB and Maharashtra to demand from their Govt. a parity of fuel prices with other states like Delhi.
     

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