NDTV correspondent and Agencies, March 1, 2010 (New Delhi)
Prime Minister Manmohan Singh on Monday ruled out any rollback in petrol and diesel prices, saying the economy has the capacity to absorb the increase without triggering inflationary pressure.
He said the fuel price hike would affect the wholesale price index (WPI) by no more than 0.4 per cent. (Read: Petrol Hike - Rs 3 in Mumbai, Rs 2.71 in Delhi)
"Any increase in prices does hurt some people, but we have to take a long-term view," he said. Singh made it clear following populist fiscal policies for long harm the economy.
"We cannot save people from inflation if we follow all populist fiscal policies. Sooner or later these populist policies if persisted for a long time to come will lead to the erosion of the investment climate," he said.
Earlier, speaking to NDTV's Prannoy Roy after the decision, finance minister Pranab Mukherjee ruled out any rollback of fuel price hike. (Watch: Exclusive - Finance Minister talks to Prannoy Roy)
Mukherjee's oil decision has fuelled what could turn into a political crisis.
Manmohan denies rollback of fuel price hike
