STOCK MARKET BSE NSE

Deregulated Diesel Will Have Cascading Effect on Inflation: CPI

Published: 18th October 2014 08:37 PM  |   Last Updated: 18th October 2014 08:37 PM   |  A+A-

By PTI

NEW DELHI: CPI today attacked the government for deregulating diesel prices, saying the move would have a cascading effect on the overall inflation as the immediate reduction in prices due to a fall in global crude price levels may not remain for long.       

"In the long term, the deregulation of prices would do more harm than good as the government will have no role in regulating the prices. This will adversely affect the common people," CPI National Secretary D Raja said here.        

The government has also not reduced the charges of public transport like bus and rail fare which were raised due to the hike in diesel prices, he said, asserting that the decline in diesel prices by over Rs three was "only a temporary phenomenon".     

"Earlier, the Congress did away with the administered price mechanism and deregulated petrol prices and now the BJP has deregulated diesel prices," Raja said.

Regarding the fixing of natural gas prices, the CPI leader said the government had increased it to USD 5.61 per mmBtu and not to the level of USD 8.4 as recommended by panels set up by the previous UPA-II government.          

But by deciding to revise the prices every six months, the government has found "a camouflaged way of helping the private corporate houses and assuring them that their interests will be taken care of," Raja said.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp