Left terms oil price hike as 'unacceptable'

As the Government plans another round of hike in the prices of petroleum products, UPA allies Left parties on Wednesday said the move was unacceptable as it would mount greater miseries on the people.

"The hike is simply unacceptable. Particularly at a time when the prices of essential commodities are on the rise, such a rise will lead to a cascading inflationary spiral," CPI(M) Polit Bureau member Sitaram Yechury said, rubbishing reports that Left parties had given their consent to the latest moves.

Yechury also termed as "untenable" the government claim that it is being forced to hike the prices of petroleum products because of rise in international crude oil prices and questioned the high levels of taxation in the oil sector.

"The government cannot continue to use the oil sector as the milch cow to finances the expenditures," he added.

Reacting to reported moves to hike petro product prices, CPI National Secretary D Raja said the government should restructure the customs and excise tax structure on oil imports instead of increasing the prices of petroleum products every now and then.

"Refining charges in the country are also on the higher side and the government should slash it," he said.

The government should not treat oil sector as the only source for resource mobilisation, he added.

Left parties said "if the UPA government is true to its commitments to the common man, then it should desist from undertaking another price hike" and warned that they will oppose any such hike that will impose further burdens on the people.