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Govt may rollback fuel price hike

With Sonia in the picture, the Govt may consider a partial cut in the steep hike.

india Updated: Jun 06, 2006 22:55 IST
Press Trust of India
Press Trust of India

With Congress President Sonia Gandhi entering the picture in the face of mounting protests, especially the key Left allies, there are indications that the government may rollback the steep hike in petrol and diesel prices, at least partially.

The possibilities of the rollback, also demanded by the Congress, surfaced after Petroleum Minister Murli Deora called on Gandhi to explain the circumstances for the Rs 4 a litre hike in petrol and Rs 2 a litre in diesel announced on Monday.

Sources said that Gandhi intervened possibly on account of "miscommunication" between the government and the ruling party on the quantum of the hike in fuel prices.

Immediately after the announcement of the hike, pursuant to a Cabinet decision on Monday, Congress had demanded a rollback, while other political parties including crucial Left allies have threatened agitation against the measure, saying it was "anti-people."

Earlier in the day, Deora had said that "we have tried to pass on the least possible burden to consumers. The spurt in international oil prices required a steep hike to save oil companies from bankruptcy."

First Published: Jun 06, 2006 19:12 IST