NEW DELHI, Aug 25: With the Bharatiya Janata Party (BJP) challenging the United Front (UF) government to expose those responsible for the oil pool deficit, the relations between the UF and the Congress is likely to come under strain during the brief special parliament session beginning on Tuesday.

The BJP demanded a white paper on operation of the oil pool account from 1989-90 to 1996-97 covering all related aspects. While opposing any hike in prices of petroleum products, the Bharatiya Janata Party offered a package containing alternative solutions to the deficit in the oil pool account "without burdening the common man." The BJP approach is to reduce customs and excise duties as well as discouraging use of personal vehicles.

It is not merely the BJP, which has made this demand, even the CPI(M) has demanded such exposure. Having sensed the mood of the people, the Congress itself has been singing a different tune and has opposed the hike in petrol prices.

The Congress is likely to divert the issue by harping on `issues of national importance' but the BJP is apparently in no mood let the session be a tame affair.

In a special briefing held on the Janmashtami holiday, the BJP spokesman Yashwant Sinha charged the United Front government with perpetuating a state of suspicion on the petrol price hike on the one hand and on the other without naming the Congress blamed it for the critical situation in the oil pool account.

The two major reasons, the BJP economic cell pointed out responsible for the oil pool deficit were diversion of funds from the pool since the days of the Rajiv Gandhi government as well as devaluation of rupee.

The party said that while the previous governments had always been clamouring about the rise in international crude prices, it has maintained stoic silence when the prices crashed. "Where has the surplus generated during such crashes been diverted?" Sinha asked.

The party even disputed the latest government claims about the crude price rise. In June last the prices had risen to $20 a barrel from $16. But soon it came down to $17.85. Price fluctuation had been a normal affair in the international market.

The BJP wanted the government to maintain stability in external value of rupee as this had been the major factor in pushing up the import bill on crude oil during the last six years.

The BJP also proposed that oil companies be given autonomy so that they operate on commercial lines, without assuring a minimum guaranteed return, unlike the present practice.

Sinha warned that a 10 per cent hike in prices would have an impact of 2 per cent inflation.

Sinha said the current thinking of upward revision of petroleum product prices by the UF government was a clear indication of `lack of vision' on its part.

The government is not even in a position to point out at the real culprit responsible for the present unmanageable size of deficit in oil pool account, which is estimated to be around Rs 20,000 crore today and is likely to be around Rs 24,500 crore by end of 1998.

Before asking people to share the burden of increase in crude oil prices in international market from $16.77 to $20.63 dollars per barrel during the last one year, the government should have explained how and why people were deprived of the benefits of fall in crude oil prices from $22 to $16 during 1990-95, he said.

People should be told what exactly happened to the surplus funds to the tune of Rs 9266.94 crore in the oil pool account at the end of 1989-90, the total amount siphoned off and the total amount-including interest-due from the government to the oil pool account, the party said.

The BJP suggested that the government immediately return the account transferred from the days of the Rajiv Gandhi government with interest applicable to inter-departmental transfer. "This would wipe out the deficit completely," the party said.

It also suggested as an immediate step, customs duties should be drastically reduced to 5 per cent on crude oil and petroleum products imports- in view of its critical role in the economy.

This would reduce prices of both subsidised and other petroleum products, which is virtually a method of cross-subsidisation by pricing petrol and aviation fuel at a high level. Similarly, excise duties should be rationalised, it said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.