The party has disfavoured the government taking on the burden of petrol prices, noting that it "may not be sound economics".
Even as government is expected to come under pressure in the wake of rising international oil prices, Congress appeared to be taking a strikingly reformative posture on the issue of petrol prices.
The party has disfavoured the government taking on the burden of petrol prices, noting that it "may not be sound economics".
"It may not be sound economics to keep on taking the burden for petrol prices while there is an ever increasing demand for petrol vehicles," party journal Congress Sandesh said in its latest issue.
But only a few days ago, finance minister Pranab Mukherjee only promised to "take care" of impact of $102 per barrel price on domestic retail prices.
In its editorial piece, the party mouthpiece noted that the government has decontrolled the price of petrol while it still provides subsidy for diesel and cooking gas. It also admitted that UPA's "greatest criticism" comes on the issue of price rise.
Congress Sandesh took the view that the increased demand for the vehicles was because of the "increased affluence" of the middle class.
The journal said among the "greatest criticism" faced by the government today is the rise in prices. "No doubt enhanced prices affect the budget of one and all. The greatest effect is felt by the poorer sections of society."
Stressing that some of these happenings are not of the government's doing, it said the ever-rising prices of petroleum products is due to the increase in crude prices internationally.
"Prices can only be kept lower by providing subsidies which would deprive the government of resources for other development projects," it felt.
As against this, Mukherjee while voicing concern over world oil prices touching a 28-month high of $102 a barrel, had promised to "take care" of its impact on domestic retail fuel prices.
"Unfortunately, developments in West Asia and its impact on the Arab world is causing uncertainty about (oil) production (and) about (its) availability. We are watching the situation (closely)," Mukherjee had said.
The spike in global rates has meant that the gap between domestic retail fuel price and their cost of production has widened, necessitating action - either by way of price increase or hike in government subsidy.
On the hike in the prices of certain food articles and vegetables especially onions, the Congress Sandesh said the affected common man is not concerned as to who is to blame and is concerned about making both ends meet.
It said the centre is seized of the matter and is doing all under its control to bring down the prices.
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