CPI flays govt for not reducing fuel prices

NEW DELHI: Attacking the government for not reducing the price of petroleum products despite a slump in global oil prices, the CPI on Sunday said that the price reduction would "cool" the markets and moderate inflation.

"We demand immediate reduction of domestic price of petroleum products proportionate to the decline in international price. We believe that such a step will cool the market and moderate inflation," CPI General Secretary A B Bardhan told reporters after a National Executive meeting.

In a resolution adopted at the meeting, CPI expressed its "deep resentment" at the "refusal" of the UPA government to reduce the oil prices even after international prices had dipped from $140 per barrel to around $65.

"If increase in the international price was the reason for hiking the domestic price, why the decline in global price shall not be reflected in the domestic price level," the party asked.