Congress in no mood to roll back fuel price hike

New Delhi: The Congress-led United Progressive Alliance is in no mood to immediately roll back the increase in prices of petroleum products announced by Finance Minister Pranab Mukherjee in the Union Budget 2010-11.

The Congress core committee met to discuss the issue of the increase in prices and protest by some UPA partners against the move in New Delhi on Tuesday with sources telling that the party will study the impact of price hike.

Sources also told that the Congress is of the view that there is an economic compulsion to increase prices of petrol and diesel.

But the final decision could well rest with Congress President and UPA Chairperson Sonia Gandhi.

While Prime Minister Manmohan Singh and Mukherjee are in support of the increase many other Congress leaders are against the move.

The increase could be reduced later if there was any adverse impact on food prices.

Among the UPA partners only Sharad Pawar-led Nationalist Congress Party is in favour of the increase while the Trinamool Congress and the Dravida Munnettra Kazhagam (DMK) have made it clear that they want a roll back.

Trinamool chief and Railways Minister Mamata Banerjee reiterated her appeal for roll back of the fuel price increase.

"We don't want to get into any quarrel. In a democracy different political parties have their own position and our party has also articulated its view. The appeal (for the rollback) would be made while remaining in the UPA. This is the democratic way," said Mamata.

DMK MP Kanimozhi also sounded hopeful that the issue of fuel price hike would be sorted out soon.

"We have been asking for a rollback. Anything to this effect will be a welcome move. There is no question of DMK withdrawing support from UPA," said Kanimozhi.

Opposition parties have also closed ranks on the matter. The Left, the Bharatiya Janata Party and the Telugu Desam Party are against the hike.

"This argument that the hike will have only a .04 per cent increase in wholesale price index doesn't take into account the cascading effect. This statement by the Prime Minister without listening to what Parliament has to say is not good for the democratic process," said Communist Party of India-Marxist Politburo membr Brinda Karat.

Karat was replying about Prime Minister ruling out any possibility of a roll back in fuel prices.