On 20 June 2005, seven central trade unions unambiguously opposed the fuel price hike announced by the union cabinet and insisted on its immediate withdrawal. The central trade unions have decided to launch a nationwide campaign against the oil price hike announced by the government, which they say would leave a heavy load on the common people. The price hike has resulted in an increase of Rs. 2.00 and Rs. 2.50 per litre for diesel and petrol respectively.

The unions have expressed shock over the UPA government’s interest in private oil companies creating a big burden on the common man. According to them, the decision on hike reveals the government’s unwillingness in paying heed to the objections raised by the working class. A joint statement by the unions appeals for a nationwide campaign against the price hike and calls for protest actions and demonstrations.

The statement, jointly signed by the All-India Trade Union Congress, All-India Central Council of Trade Unions, Centre of Indian Trade Unions, Trade Union Coordination Centre, United Trade Union Centre (LS), United Trade Union Centre and the Hind Mazdoor Sabha, says that the “unwarranted” price hike will trigger inflation as the input costs for both industry and agriculture will go up and lead to rise in the prices of all commodities.

The higher global crude oil price could be offset by reducing the excise duty or withdrawing the additional cess of 50 paise and removing the price parity system of indigenous crude with the imported lot and also by withdrawing the duty drawback system to private companies for exports, amounting to Rs. 1,200 crore, the statement says. The signatories also suggested that the price stabilisation could be achieved by partly using the oil development fund of Rs. 5,400 crore, which is lying unutilised.