PM rules out rollback of petrol and diesel price hike

V Mohan Narayan

On Board PM's Special Aircraft, Mar 1 (PTI) Indian Prime
Minister Manmohan Singh on Monday ruled out any rollback in
hike in petrol and diesel prices, saying the economy has the
capacity to absorb the increase without triggering an
inflationary spiral.

Singh also made it clear that following populist fiscal
policies for long harmed the economy, two days after key UPA
allies Trinamool Congress and DMK made a strong pitch for the
rollback.
"Any increase in prices does hurt some people, but we
have to take a long-term view," he told reporters accompanying
him on his way back home from Saudi Arabia when asked about
growing concerns over the recent hike in oil prices and the
ripple that it may have. The direct effect on the Wholesale
Price Index will be no more than 0.40 per cent, he said.
Touching upon Indo-Pak issues, Singh said he had asked
Saudi Arabia to use its "good offices" to persuade Pakistan to
desist from the path of terror.
Singh was asked whether India would like to see Saudi
Arabia as a credible interlocutor in dealing with some
Indo-Pak issues against the backdrop of remarks made by
Minister of State for External Affairs Shashi Tharoor in this
regard that triggered a controversy
"I know Saudi Arabia has close relations with Pakistan,"
Singh said, noting that he had discussed Indo-Pak relations
with King Abdullah on a one-to-one basis and explained to him
the role that terrorism aided, abetted and inspired by
Pakistan is playing in India.
"I did not ask him to do anything other than to use
his good offices to persuade Pakistan to desist from this
path," he said.
Earlier in the day in Riyadh, Singh said India is willing
to walk the "extra mile" to open a new chapter in relations
with Pakistan provided it acted decisively against terrorism.
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