\'UF lifted price control on fuel\'

NEW DELHI: Oil minister Murli Deora on Tuesday hit back at the Opposition over its \"hypocrisy\" on the issue of motor and kitchen fuels price increase, saying it was the Left-supported United Front government and not UPA that had decided on lifting Centre\'s control on pricing of petroleum products and the NDA implemented the measure in 2002.



\"The NDA government had raised price of kerosene sold to poor through ration shops from Rs 2.52 a litre in January 1998 to Rs 9 per litre in March 2002. This increase was 258%, even though crude prices had risen by just 147% during that period,\" Deora said. The United Front government, of which Left parties, the Telugu Desam and Samajwadi Party were constituents, in November 1997 notified full deregulation of prices of petrol, diesel, cooking gas and kerosene by 2002. According to this schedule, rates of kerosene and cooking gas should have been at least double the revised price of Rs 12.32 per litre and Rs 345.35 per cylinder, respectively.



Before last Friday\'s revision, the UPA government did not increase kerosene prices for the last six years though crude more than doubled from $36 a barrel in May 2004 to $78. \"We raised kerosene rates by Rs 3 per litre against the required increase of Rs 18 per litre. We have ensured that the poor is not unnecessarily burdened.\" \"We will continue to subsidise cooking gas and kerosene which are the common man\'s cooking fuels. Even after last week\'s price increase, kerosene price is Rs 15 per litre below cost and LPG is underpriced by Rs 226.90 per cylinder,\" Deora said.



\"We have freed price of petrol, a fuel that is used in cars. Diesel prices will be eventually freed but government reserves the right to intervene in case of sharp spike or excessive volatility in global prices. What we did was bare necessity. We were compelled to do so because oil PSUs were faced with Rs 74,300 crore losses. The opposition is being a hypocrite in its criticism.\"



Even after the latest round of price increse, oil PSUs would be saddled with Rs 53,000 crore of under-recoveries.



\"Petrol price has increased only 53% and diesel 85% since May 2004 despite crude oil prices rising by 111%,\" he said.
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