Cong doesn't want govt to hike oil prices

NEW DELHI: Facing important assembly elections in Gujarat and Himachal Pradesh next month and troubles on the prices front, the Congress leadership on Friday made it clear to the government that it is not in favour of a hike in fuel prices. This is bad news for the government as international crude oil price has reached close to $100 a barrel.

The message to be “mindful of the Congress political compulsions” from the AICC came on a day when Sonia Gandhi met Prime Minister Manmohan Singh and petroleum minister Murli Deora separately. “The Congress party does not want the common man to be burdened with a hike in the prices of petrol and kerosene.

We realise that the pricing of oil products is linked to the changing international price of the crude oil and that it is for the government to take the decision. But in the opinion of the Congress, the government should, if necessary, explore all options to avoid passing the burden of price hike onto the common man,” said AICC spokesperson Shakheel Ahmmed.

His comments followed Mr Deora’s meting with Ms Gandhi at 10 Janpath which triggered speculations of the two discussing the issue of surging international crude price. Ms Gandhi also met the prime minister in the evening. But party sources insisted that Ms Gandhi’s meeting with Mr Singh and Mr Deora were over some meetings of the Rajiv Gandhi Trust.

But the statement that the party leadership chose to sent out through its spokesperson should, beside projecting a ‘pro-aam aadmi’ face in election-bound states, alert the government which faced criticism when its co-ordination with the party wing failed during the last time petrol-kerosene prices were hiked.

The oil PSUs are seeking a hike in prices on account of its mounting losses as well due to the fact that the quantum of bonds approved for them have been rendered inadequate.

Mr Deora also held a meeting with finance minister P Chidambaram on Thursday to discuss the matter. But the mood of the Congress could force the government to put off the decision in the fuel front.

If the Congress directive is anything to go by, the Manmohan Singh government will not have the elbow room to push any tough decisions in the coming months. In any case, governments normally do not push any bold measures on the year preceding the general election.