The opposition took the unprecedented step of staging a walkout during the finance minister Pranab Mukkerji’s budget speech on the government move to hike fuel prices.
Public sector oil marketing companies will incur a loss in excess of Rs.45, 000 crore in 2009-10, according to Petroleum Minister Murli Deora. The expert group constituted for suggesting sustainable pricing policy submitted its report recently, suggesting for market driven prices. Fuel price hike is made to cover the under recoveries in oil prices and not to facilitate the Oil Marketing Companies (OMCs) earn huge profits.
The oil marketing companies are the backbone of the country’s energy security, hence their health is a cause for the government in power. When global oil prices touched record highs during 2008, the government had provided the oil companies financial support of Rs.1,06,000 crore. Such kind of subsidy is neither desirable nor sustainable in the long run. One of the recommendations of Dr. Parikh committee is, rationalisation of fuel prices to mimic free market prices that promote efficient fuel choice and substitution. The opposition parties, who are opposing the government move should see the reason and rationale behind the increase and should not oppose just for the sake of opposing. They should display wisdom and more maturity in dealing with sensitive issue like this, which is in the national interest, in the long run.
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