Petrol price hike: Congress in a bind, braces for political cost

New Delhi: Congress shuffled between distancing itself from the decision to raise petrol prices to blaming the global economic situation, as it struggled to come to terms with the political cost of the unpopular decision on Wednesday.AICC spokesman Rashid Alvi said, “Petroleum prices are deregulated. These companies decide their own price.

Government does not intervene in these matters. Global prices has gone up.” However, he was quick to add, “Rupee has gone down in comparison to dollar. These are difficult times. We are also affected by the global situation.”
The big hike, dubbed by many as ‘petrol bomb’ , left the party wondering about its political implications with the middle classes in the wake of the negativity over corruption cases and the dampener of recent election defeats.

Congress leaders said the opposition parties would relish the situation to pile pressure on the Centre over “mismanagement of economy under the economist PM” . With elections coming in key states, it would put Congress on the defensive.

Partymen have been apprehensive for a while about how the fuel price hike would play out in the political domain even as they acknowledge the economic compulsions of global economic downturn.

The biggest fear revolved around diesel prices, after the finance minister recently hinted at deregulation. MPs were worried that the step would sound the virtual death knell for the party since diesel would take the anger over fuel hike to the farthest of villages.

The petrol price hike is feared largely for its impact on overall inflation, the worst being food prices. The failure to clamp down on prices of essential items have been the bugbear of UPA-2 and the big fuel hike can only make the situation worse. It was no surprise that Kerala PCC chief Ramesh Chennithala demanded a rollback .