DMK threatens to pullout of UPA, demands rollback in petrol price hike

CHENNAI: Ruling UPA's key ally DMK today issued a veiled threat of pulling out of the alliance on the issue of the "atrocious" petrol price hike, saying the party had never hesitated to do so earlier respecting people's sentiments.

"The DMK is in the coalition. But (being in) alliance is different but it is our duty to voice concern against policies that will affect the people," DMK chief M Karunanidhi told a large gathering of party supporters to protest against the Central government for hiking petrol prices and the state government for increasing bus fares and milk prices.

The 88-year-old DMK patriarch said his party had walked out of alliances, "whether it be the BJP (led NDA) or while being in the VP Singh cabinet."

"We have never hesitated to raise voice of opposition whenever the basic principles were hurt and if we cannot solve it by being an ally, we have not hesitated to come out and uphold those principles," he said even as his remarks were loudly cheered by partymen.

Describing the hike as "atrocious", Karunanidhi said not just opposition parties or UPA constituents but even Congress leader and Defence Minister A K Antony had expressed dissent over the petrol price hike, saying it was unacceptable.

"Prime Minister Manmohan Singh should take cognisance of this and offer relief to the common man," he said.

Reacting on DMK's threat to UPA, Congress's Raashid Alvi said, "They are a respectable ally of ours, they are very much our ally."

Commenting on DMK's threat, Prabhu Chawla of The New Indian Express told ET Now that the Congress is losing its credibility. He was of the opinion that new allies will not join the UPA.

However he added the DMK was also not in a position to withdrawits support to the UPA government.

Following DMK's threat, government sources have told Times Now that a hike in diesel prices has been stalled until the presidential elections.

Sources say that DMK is politically posturing as oil companies are likley to reduce prices within 72 hours.

Citing prospects of heavy losses, oil marketing companies had raised the pre-tax price of petrol by Rs 6.28 per litre last Wednesday, immediately after the budget session of Parliament.

Earlier today, ET reported that state-run oil companies are ready to cut prices of petrol by about Rs 2 per litre after reporting strong earnings, signalling a surprise turnaround in the sector that scared investors with talk of astronomical losses from subsidised fuel sales.

The 10%-plus increase in retail prices of petrol has drawn widespread criticism from consumers, politicians and the automobile industry.