Tweets or TV bytes of oppositions won't resolve oil price issue: Jaitley

In a direct attack to the oppositions, Jaitley in a Facebook blog titled 'The Oil Prices and the Hypocrisy of the Opposition' wrote: "The challenges thrown up by the increase in the international price of crude oil cannot be resolved by either the tweets or television bytes of some opposition leaders. The problem is serious."

Taking a dig at Congress President Rahul Gandhi, the Union Minister said: "We have a situation where a number of non-BJP non-NDA States have refused to pass on any benefit to the consumer. What are the people supposed to conclude? Are Rahul Gandhi and his reluctant allies only committed to tweets and television bytes when it comes to give relief to the common man?"

He said that the oil producing nations have capped their production, thus creating a demand-supply mismatch.

Noting down the reasons for the rise in fuel price, Jaitley wrote: "The political crisis in Venezuela and Libya has adversely impacted the production in those countries. The US sanctions on Iran have increased the uncertainty towards Iran’s supplies to its buyers. The commercial supply of shale gas, which was intended to balance the high crude oil cost, is running behind schedule."

He stated that the high cost of crude oil has also impacted the currency situation.

"India’s macroeconomic fundamentals with regard to its fiscal deficit, inflation, foreign exchange reserves etc. are fairly stable. Tax collections are encouraging. However, a high cost of crude oil adversely impacts the Current Account Deficit. That, in turn, impacts the currency. Additionally, the hardening of the dollar has further impacted most global currencies. Both the above factors have an impact on the cost of fuel available to a citizen," his blog post said.

Taking a dig at media, Jaitley wrote: "A section of the media excessively reports the increase when the prices rise and blackout the reductions when prices fall. Government critics rejoiced the political consequences of the increase of the crude prices. This was evident from their comments."

The Union Minister claimed that when the price was reduced, the critics did a "volte face" and argued that this is "bad economics."

"Let me categorically assure all that there is no going back on deregulation of oil prices. Even Rahul Gandhi, whose party had inflicted a double digit inflation on India during the past five years of UPA-II, gave television bytes and released tweets advocating a price reduction," said Jaitley.

On the measures taken by his government, Jaitley mentioned that: "Last year, in the month of October, when the oil prices were rising, the Centre cut down its excise duty by Rs.2. We have requested the States to make a similar cut. Most of the BJP-NDA States did so. The others refused to do so."

"I had always maintained that in extraordinary situation, the capacity of an economy to give relief will depend on it’s fiscal strength.  In view of the increase, particularly in the direct tax revenue, the Centre decided to give between central excise and the absorptions by the OMCs, a Rs.2.5 relief to the consumer. We requested the States to give a similar relief," he added.