West Bengal Chief Minister and UPA ally Mamata Banerjee on Wednesday hit out at the government over the sharpest ever petrol price hike of Rs 7.50 per litre, calling it a burden on the common man.
Watch the accompanying video for Mamata Banerjee's comments on the petrol price hike..."I have come to know about the hike, it is unfortunate…we got to know from the press, I don't think such hike is good, it is painful for people," said the Trinamool Congress chief.
Accusing the Centre of economic mismanagement, Mamata pointed that prices were being raised despite the international crude prices being down.
"I am with people, I am worried about the economic system and there is mismanagement. We need to plan properly," she said.
The West Bengal Chief Minister also expressed her anger saying that her party had no role in the move. She said, "No one discussed it with us, no important issues are discussed with us."
However, she reiterated that she was not walking out of the government, though she said that her party would continue to protest while remaining in the government.
The hike comes as the rupee hit an all-time low of Rs. 56.19 against the dollar.
Petrol in Delhi currently costs Rs. 65.64 a litre and after the increase it will be priced at Rs. 73.14 per litre. In Mumbai, petrol will cost Rs. 78.34 per litre. Huge queues were forming at gas stations in Delhi by 7 pm, barely half an hour after the price hike was announced.
India deregulated petrol prices in June 2010 but continues to subsidise kerosene, petrol and cooking gas to protect the poor from the impact of any inflation pressures. In the second half of 2011, oil companies began reflecting market realities more closely and raised petrol prices but were stopped from end-November on the request of the government - their majority shareholder - ahead of elections in some states. Petrol prices were last revised on December 1.
State-run oil companies have been losing Rs. 8000 crores per annum because they were being forced to sell petrol at subsidised rates. (With inputs from Agencies) Also Read: Experts debate: Is diesel, LPG, kerosene price hike next? Shocked auto sector accuses Re, plans to turn diesel Biggest petrol price hike in a single tranche: RS Sharma
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