Jaipal more worried about oil firms' image
26 May 2012 1:34 AM GMT
After the whole country erupted against the government's decision to increase petrol prices, the Congress president Sonia Gandhi convened a meeting of the party's core committee at the prime minister's official residence in the capital on Friday.
Earlier in the day, the oil minister Jaipal Reddy met Prime Minister Manmohan Singh after returning from Turkmenistan. The Prime Minister's Office (PMO) insisted that this meet was not scheduled to discuss the petrol price hike. Interestingly, Reddy said that was kept in the dark about the hike. He said that he cut short the Turkmenistan visit in order to address this crisis.
Reddy said that his ministry sought a meeting of the high-powered ministerial panel, which would decide on prices of diesel, domestic LPG and kerosene. However, this high-powered ministerial panel, headed by the finance minister Pranab Mukherjee, is unlikely to meet this month. Facing criticism from its allies, like the Trinamool Congress, the government does not want to to open a new front with them by calling this meet immediately. Mukherjee mentioned on Friday, 'In my perception, the EGoM will not meet soon, certainly not this month.'
Reddy on Friday said that the government is monitoring the situation and would take a 'definitive' view in a few days. He said, '[The oil companies] are among world's Fortune companies. They are our blue-chip companies at the global level. We cannot allow their image to be adversely affected at any cost.'
He added, 'Therefore, oil-marketing companies feel desperate. So do we. This decision is unpleasant and harsh [but] was taken by oil-marketing companies.'
He also mentioned that the government at this point cannot take a view on forcing a price cut due to uncertainty about where international oil prices and rupee-dollar rate will settle. Reddy said the both Centre and the state government should cut taxes to reduce burden on common people.
While on Thursday, the Congress had asked its chief ministers to provide some relief by lowering taxes on petrol. Uttarakhand and Kerala have already announced a cut in taxes.
Earlier in the day, the oil minister Jaipal Reddy met Prime Minister Manmohan Singh after returning from Turkmenistan. The Prime Minister's Office (PMO) insisted that this meet was not scheduled to discuss the petrol price hike. Interestingly, Reddy said that was kept in the dark about the hike. He said that he cut short the Turkmenistan visit in order to address this crisis.
Reddy said that his ministry sought a meeting of the high-powered ministerial panel, which would decide on prices of diesel, domestic LPG and kerosene. However, this high-powered ministerial panel, headed by the finance minister Pranab Mukherjee, is unlikely to meet this month. Facing criticism from its allies, like the Trinamool Congress, the government does not want to to open a new front with them by calling this meet immediately. Mukherjee mentioned on Friday, 'In my perception, the EGoM will not meet soon, certainly not this month.'
Reddy on Friday said that the government is monitoring the situation and would take a 'definitive' view in a few days. He said, '[The oil companies] are among world's Fortune companies. They are our blue-chip companies at the global level. We cannot allow their image to be adversely affected at any cost.'
He added, 'Therefore, oil-marketing companies feel desperate. So do we. This decision is unpleasant and harsh [but] was taken by oil-marketing companies.'
He also mentioned that the government at this point cannot take a view on forcing a price cut due to uncertainty about where international oil prices and rupee-dollar rate will settle. Reddy said the both Centre and the state government should cut taxes to reduce burden on common people.
While on Thursday, the Congress had asked its chief ministers to provide some relief by lowering taxes on petrol. Uttarakhand and Kerala have already announced a cut in taxes.
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