Diesel, LPG prices must be hiked

The Prime Minister's Chief Economic Advisor Dr C Rangarajan has admitted that a hike in diesel and LPG prices is imminent despite a steep hike in petrol prices last week. Dr Rangarajan said the government can soften the blow but fuel price hike is the need of the hour to contain the fiscal deficit.

He added I think there is a need to raise the prices because the fiscal deficit can be contained only if you act on cutting the subsidies and the most important element in the subsidies programme is the petroleum subsidies. Therefore, I would say there is a need for action with respect to the prices in diesel and LPG. It should be done as early as possible.

Clarifying this is a top priority he also said, I would urge that action be taken in these two fields but I must also mention there are different ways of doing it. There are ways of doing it in such that the low-income group is not deeply affected. Methodology of modes of doing it have to be thought through but action is required.

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