TN CM opposes fuel price hike, wants roll back in diesel price

CHENNAI: Tamil Nadu Chief Minister and DMK Chief, M Karunanidhi has opposed the hike in the price of petrol and diesel saying the Budget

announcement will have far reaching implications. He has pressed for a roll back atleast in the price of diesel to protect the farmers and common man.

On Friday, the CM had hailed the Budget for the thrust it gave to agriculture, education, public health and infrastructure. He also welcomed the Rs 200 crore grant for establishing zero liquid discharge system at Tirupur by dyeing units.

However, in his identical letters on Saturday addressed to UPA chairperson, Sonia Gandhi, Prime Minister, Dr Manmohan Singh and Finance Minister, Pranab Mukherjee he drew their attention to the " far reaching implications of the announcement of increase in the prices of petrol and diesel".

He said he Centre and States are grappling with the issue of high food inflation in the recent months. Any increase in the price of diesel will have a cascading effect on food prices as well as prices of other essential commodities. Therefore, he sought their intervention for a roll back atleast on the price of diesel.

It is to be noted the DMK General council which met on February 20, took a tough stand against fuel price hike, had urged centre to reject the recommendations of Kirit Parikh committee.

" Already, people are hard hit by the increase in the price of essential items. If the price of petrol, diesel, kerosene and cooking price is increased, it will lead to steep increase in prices affecting the lives of poor and middle class people" the resolution said.

Expressing concern over the high rate of food inflation, it said the Centre is taking a number of steps to bring down prices. Since the States are earmarking more funds for food subsidy, they are hard pressed to earmark adequate resources for development schemes.

It wanted the Centre to approach the issue on a war footing by brining amendments to essential commodities Act and other acts, the general council pointed out. The DMK, which has 18 Lok Sabha members, is a coalition partner in the UPA Government at the centre.