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Protests against fuel price hike

       New Delhi/Thiruvananthapuram/Hyderabad: Political activists stopped trains and buses across the country on Tuesday and truckers kept off the roads, as the Left parties observed a nation-wide strike today to protest against the hike in the prices of diesel and petrol. The strike called by the Left parties, which shore up the Prime Minister Manmohan Singh's United Progressive Alliance Government at the Centre, also got the support of Samajwadi Party, TDP and Asom Gana Parishad. In Kerala, the ruling Communist Party of India-Marxist-led Left Democratic Front (LDF) and pro-Left Front unions took to street to force the Central Government to roll back the recent oil price hike. The Government last week raised petrol prices by 9.2 per cent and diesel by 6.6 per cent, the first increase in nine months, to cut the losses to state-run refiners hit by soaring global crude prices.

      While several Congress-ruled state governments have slashed local taxes to give some relief to the retail consumers, states ruled by Communists and the main opposition Bharatiya Janata Party want the Central Government to bring down Central taxes to cushion the international prices, instead of hiking retail prices. The country imports two-third of its oil but decades of government subsidies have kept prices artificially low in the past despite increase in international prices. Although the previous BJP-led NDA Government cut subsidies and sought to align domestic and international prices, a decision to raise retail prices is invariably met with opposition from across the political spectrum. Last week, even the Congress party sought a partial roll-back of the price increase, but the government ruled out such a move.

     In Hyderabad, former Chief Minister N. Chandrababu Naidu peddled cycle along with supporters of his opposition Telugu Desam Party and left parties to protest against the fuel price hike. Clad in yellow shirt same as the colour of his party flag, Naidu said that the economic reforms should be pro poor. "What we are demanding is that this reform should be pro poor, pro farmer and pro artisan, otherwise there will be frustration," Naidu said.

     The strike in West Bengal began at 3 p.m. While the prices of petrol and diesel were increased, the government did not raise prices for kerosene, which is heavily used by the poor, in the face of pressure from communist allies it relies on to stay in power and Liquified petroleum gas used for cooking. Taxes make up 55 percent of the price of petrol and a third of the price of diesel in New Delhi. Analysts said the price increases would put pressure on the Reserve Bank of India to raise rates as it would add up to 0.5 percentage points to annual inflation. The government said that it would give state refiners 280 billion rupees in bonds to compensate them for losses. It made a similar capital injection earlier this year.

    In Delhi, the Left parties organised a rally at Jantar Mantar to protest the hike. Meanwhile, the Left parties are also giving final touches to an appraisal report on the performance of the Congress-led United Progressive Alliance Government at the Centre over the two years. They have also warned that their support cannot be taken for granted. Their note on the government's performance is likely to be discussed at the UPA-Left Coordination Committee scheduled to meet in the capital on Thursday.

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