The government was on the back foot in the Rajya Sabha on Tuesday as Opposition members protested against the decision to hike subsidised LPG prices.
Oil Minister Dharmendra Pradhan justified the decision in the Upper House and said the move was initiated in June 2010 by the erstwhile UPA government so that the subsidies can be completely eliminated.
A government official, meanwhile, claimed that the price hike was the previous government’s idea that the incumbent was implementing.
The official said that an Empowered Group of Ministers (E-GOM) chaired by then Finance Minister Pranab Mukherjee had decided that the price of domestic LPG will be increased by ₹35 per cylinder at Delhi, with corresponding increases in other parts of the country.
“It was also decided that the price will be periodically revised based on increase in paying capacity as reflected in the rising per capita income,” he added.
In the Rajya Sabha, Opposition members attacked the Centre over the decision to remove subsidies for cooking gas. The House witnessed adjournments twice during the zero hour as Opposition members stormed to the Well of the House demanding the Centre to drop the move.
Deputy Chairman PJ Kurien adjourned the House first for 10 minutes and later till noon.
Trinamool chargeWhile raising the matter, Trinamool Congress leader Derek O’Brien said it is the social commitment of the Centre to provide cooking gas at subsidised rates. “Oil prices have come down from $111 per barrel to $48 but the government is raising rates of cooking fuel,” he said and added that the BJP had promised that it will continue with the subsidies at the time of elections.
CPI(M)’s Sitaram Yechury reminded Prime Minister Narendra Modi about his campaign urging people to voluntarily give up subsidies so that subsidised LPG can be provided to the poor and needy.
“But the government has now decided to charge all the poor ₹4 per cylinder more every month. This is strongly condemnable. The government should withdraw the decision,” he said.
Leader of the Opposition Ghulam Nabi Azad said the people had voluntarily given up their subsidies in the hope that subsidised cooking gas will be given to the poor.
“This is not acceptable,” he said and added that the Centre is killing the poor as the price of LPG would go up by ₹48 per cylinder at a time when oil rates globally have slumped.
The Oil Ministry official also said that with the expansion of LPG coverage, it was imperative to rationalise the subsidy component so as to ensure that the needy and poor are fully protected. At the same time the affluent households should pay a little more given their rising income and higher paying ability, he added.
The government is of the view that the increase in prices will have minimal impact on LPG consumers as the overall inflation remains at a low level. “Having said this, the government stands committed and will continue to provide subsidy assistance to the needy and poor households,” he added.