Karat asks PM to reduce petrol, diesel prices

New Delhi, Nov 2: CPI(M) General Secretary Prakash Karat today asked Prime Minister Manmohan Singh in a letter to review the prices of petrol and diesel and reduce them following fall in international crude prices.

From the peak 71 dollars per barrel in May, the crude price has now come down to 55 dollars per barrel, the Left leader wrote, seeking a cut in the fuel prices increased substantially in June.

''..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 petrol price after protests.

''I strongly feel that the price hike should be reviewed again in the light of the recent developments,'' Mr Karat said.

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 tax structure of petroleum products.

''(This) is a welcome step towards rationalisation of tax/duty structure of petroleum products to reduce the burden on the customer,'' Mr Karat said.

He said the high dividend of Rs 6,417 crore paid by ONGC and Rs 1,460 crore paid by IOC to the government is ''reassuring'' in the context of the financial health of the oil PSUs.

''As a matter of fact, I understand that even the lowest profit-making oil market company like BPCL paid a handsome performance/profit linked incentive to its senior executives and others for the year 2005-2006,'' he said in the letter to Dr Singh.

The Left parties and their trade union affiliates had organised countrywide protests following the increase in fuel prices last June. The Left had even submitted a detailed note to the government on the steps to be taken to avoid a price rise.

UNI