Petroleum price hike: Withdraw price fixing authority from OMCs, says Jaya

Last Updated: Sunday, September 1, 2013 - 00:03

Chennai: Demanding an immediate roll back of on Saturday`s "steep" fuel price hike, Tamil Nadu Chief Minister J Jayalalithaa urged the Centre to withdraw the authority given to oil marketing companies to fix fuel prices.
In a statement the chief minister said "instead of taking steps to control the falling of Indian Rupee (against the US Dollar) revising fuel prices will further lead to erosion of the economy".

Quoting RBI Governor D Subbarao`s recent remarks that the falling of Indian rupee was due to the "domestic structural factors," Jayalalithaa said, "until corrective measures are taken, there is no possibility to control the depreciation of Indian rupee and due to this, constant revision of fuel prices also becomes unavoidable."

"I request the Central Government to take corrective measures at least now," Jayalalithaa said.
She reiterated her earlier statements that instead of considering the domestic crude oil production, revising fuel prices based on international oil prices would only make the oil marketing companies to yield profits but would not benefit the public.

Referring to Prime Minister Manmohan Singh yesterday`s speech in Parliament that inflation in India was much higher than in the advanced countries and it was natural that there has to be a correction in the exchange rate, Jayalalithaa termed it unjustifiable.

"Increasing fuel prices will further lead to increase in inflation and further depreciate Indian Rupee (against the US Dollar)", she said.

She said oil marketing companies revising fuel prices due to falling rupee and firming international oil prices was "unacceptable".

She pointed out that the increase in fuel price will lead to steep increase in essential commodities besides hurting the common man.

PTI



First Published: Sunday, September 1, 2013 - 00:03

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