The CPM today asked the government to roll back the prices of petroleum products in view of the decline in the global crude prices from $71 per barrel in August to $55-56 now.CPM General Secretary Prakash Karat in a letter to Prime Minister Manmohan Singh asked for a review following a fall in the international crude prices.
”..I hope you will take necessary steps to reduce the price of diesel and petrol to the pre-June, 2006, level,” Mr Karat said in the letter copies of which were given to the media today.
The government had increased the price of petrol by Rs 4 and that of diesel by Rs 2 in June but effected a one-rupee cut in the petrol price after protests.
He also welcomed a move by the Petroleum Ministry to seek reduction of excise duty by one rupee on petrol and diesel for rationalisation of the tax structure of petroleum products.
The Left parties and their trade union affiliates had organised countrywide protests following the increase in fuel prices last June.
I am usually not a supporter of lefts policies; however this statement does carry weight. Since fuel prices were increases due to soaring crude oil prices, it would be logical to cut the prices since the cost of crude has come down significantly. However going by the track record of the current and previous governments, it would be hard if not impossible to achieve this objective.