Oil firms shouldn’t determine fuel prices: Jaya

Chennai: Criticising recurrent diesel price hikes (latest increase by Rs 0.50/litre on Saturday) Chief minister J. Jayalalitha on Sunday urged the Prime Minister to rein in the diesel prices and order the oil companies to roll back the price rise immediately. She also demanded that for the benefit of the common man the central government must withdraw the right of oil firms to determine fuel prices, a release said.

"Diesel prices have been increasing almost every month with alarming regularity and so far it has increased 11 times during this year. At a time when the people are eagerly awaiting the central government to stop the general price rise and rupee inflation, the regular rise in fuel prices is painful. It is unfair to the public and affects the poor and middle class most," Jayalalithaa said.

Diesle prices that were fixed at Rs 50.13/litre on January 1, 2013 have been revised twice a month and has increased to Rs 57.23/litre in Chennai city. The gradual rise in the diesel prices have had a spiral effect on the monthly budget in every home in the city with the bus fares, cost of transportation for school children as well as prices of vegetables and other essentials increasing on par with the fuel price hike.

Oil firms revise petrol prices on the 1st and 16th of every month based on trends in oil prices and currency exchange rates in the preceding fortnight. The most recent diesel price hike that comes in 50 paise slabs was on November 1, 2013 when it was fixed at Rs 56.51/litre.