Petrol bomb: Partial rollback on cards by month-end?

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Petrol price hike
New Delhi, May 25: With the UPA government facing severe flak for the decision to hike petrol prices by a whopping Rs 7.50 per litre, sources have claimed that there might be a partial rollback of the price hike on cards. Realizing the political impact of the decision, the government is desperately trying to douse the fire caused by the steep hike in petrol prices.

As per sources, the Congress is looking at a rollback in the range of Rs 3-5, the government is likely to proceed with a cut of around Rs 2-2.50 per litre. Meanwhile, the government called back Oil Minister Jaipal Reddy who was on an official foreign trip to Turkmenistan and the final decision on this front is expected after he lands in India.

Meanwhile, state-run oil marketers stated that they will probably be able to reduce the price by the month-end if the rupee and international oil prices hold steady. Indian Oil chairman RS Butola has been quoted as saying, “Current trend indicates that prices can come down.”

The Congress party has distanced himself from the decision to hike petrol prices by saying that they were not consulted before the decision was made. They are also stressing that diesel prices should not be hiked citing that this could indicate much harsher political implications. UPA allies have also cried foul and said that this move will burden the common man.

Trinamool Congress chief and West Bengal Chief Minister Mamata Banerjee said, “We have made a commitment to support this government and that is the reason we are not moving out. But our support does not mean that we cannot protest. We believe that the government is being unjust, it's one sided and not correct.” The DMK has also expressed their displeasure on the decision and stated that they were not consulted.

In a last minute firefighting effort, Congress leader Rashid Alvi commented on the hike, “It is a very difficult decision taken by oil companies. The companies are compelled to take such decisions due to a rise in the dollar. The NDA should not misguide the country by going on a strike. They know the situation of the country."

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