The neo-liberal government of the Congress led UPA has struck again by hiking the prices of petroleum by Rs. 7.54 on 23rd May. The domestic as well global investors have joined forces in demanding deregulation of all petroleum based products like diesel, kerosene and LPG to plug the ballooning current account & trade deficits. Added to this is the pressure put on the government by every self styled analyst in the mainstream corporate controlled media over the stalled neo-liberal reforms. Taking cue from this, the government as a step towards more aggressive neo-liberal agenda, has been regularly authorising Oil Marketing Companies (OMC) to increase petrol prices.
But the reality of the situation is that: the very statement of petrol & diesel being subsidised in itself is a big lie . Forget subsidy, government has been mopping up revenues worth billions of rupees from tax payers on petroleum products. OMC’s too are earning huge profits. Last year, oil companies like Indian Oil Company Ltd. (IOCL) recorded profit of Rs. 7445 crores , HPCL – Rs. 1539 crores & BPCL- Rs. 1547 crores, all these are profits after tax earned after transferring the burden on the backs of the working people and the poor.
It is the Rich who are subsidised not the PoorRs. 5.5 lakh Crores as corporate subsides
Government is taking import parity prices as baseline and has been projecting under recoveries as real losses. While millions of working people across the country are reeling under inflation and price rise, current prices hike in petrol is set to further worsen their plight. Indifferent to this, the government and the corporate controlled media is out rightly spreading this false propaganda of the so called “petrol subsidies”.
Anarchy in capitalist production plunged global economy in deep recession in 2008 and still there are no visible signs of real recovery. It hit Indian economy hard last year bringing down growth rate from 9% to 6.9%. Drying capital inflows & subsequent rise in current account deficit is just an indication of the deeper crisis of the Indian economy that has become captive to the speculative global stock markets. Obviously government is using the pretext of rising deficit to push through its neo-liberal agenda. If it is so concerned about deficit, then it must first of all withdraw all taxes given to all the big corporations in the country. As per Indian government own figures published in the budget, last year government lost more than 5.5 lakh crore rupees in revenue (revenue forgone) as corporate subsides.
International Prices should be matched with International wage levels!
If the government wants to bring petroleum based product prices on par with the international level, then first of all let them also match the minimum wages of the working people of this country on par with the International Western standards. For eg., minimum wage per hour in UK is 5.75 GBT (which in-fact is low for that country). Why not also pay its equivalent of Rs. 460 or more as minimum wages per hour for the Indian working class?
Now it has been two years since petrol prices was deregulated & the prices have been revised upwards 16 times in the last three years. Government’s boldness in raising the petrol prices ever so often is also because it thinks that such increases will not face big opposition but only sporadic outbursts here and there which will eventually dissipate. But it will be foolhardy on their part to continue to do so because the combination of horrendous living conditions along with price rise & mass unemployment will only fuel the discontent further. Effects of global economic crisis has brought naked class warfare on the streets of Europe & it may not be too long before this reaches the Indian shores.
Strike against the strike of Capital
The New Socialist Alternative (CWI-India) campaigns for:
For a 24 hour Industrial strike against the Petrol fuel price rise
Immediate 50% Tax on cash pile and corporate wealth to bring down the prices and to pay for fiscal deficit
For full nationalisation of banks and key industries; for a democratic workers control and management of all the resources.
For a new mass workers party that would genuinely represent the interest of the working masses
Youvraj B
New Socialist Alternative CWI-India)-Pune
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