The CPI(M) politburo on Monday “condemned” the deregulation of diesel pricing and termed the Centre’s decision as “abdication” of responsibility of the Government. The left party said the deregulation would affect the prices of all essential commodities when the international prices of oil go up. CPI(M) also urged the Government to desist from considering international market prices in calculating the domestically produced natural gas prices.
“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,” said the politburo in a statement.
The CPI(M), however, gave credit to the Modi Government for not following the UPA Government’s policy in doubling gas prices. “The Modi Government has not followed the UPA Government in accepting the Rangarajan Committee’s faulty prescription for doubling 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,” it stated.