Govt to allow market prices for diesel: PM
June 30, 2010 1:04 AM EST
The government will ease controls on diesel prices, Prime Minister Manmohan Singh said, signalling the government's determination to continue energy-pricing reforms despite strong protests from opposition parties.
Last week, the government allowed market-determined prices for petrol, which accounts for about 10 percent of the oil sold in Asia's third-largest consumer.
"With regard to petroleum prices, the fact (is) that petrol prices have been set free, the same is going to be done to the diesel prices...," a government statement quoted Singh as telling reporters while returning from the G20 nations summit in Toronto.
Analysts say market prices for fuel may stoke inflation but Singh said the government was concerned that fuel subsidies would hurt the fiscal situation.
"What we need is to do the right things (for) our country. The subsidies for the petroleum products have reached a level which is not connected to sound financial management of our economy," Singh said.
"So it is taking that into account that this decision has been taken to put some burden on the common people, but I think it is manageable."
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- China Military PLA Drills Affect Flights, Hundreds Cancelled
- Malaysia Airlines MH17: EU Feared Won't Ever Enforce Sanctions on Russia; All Talk, No Force
- U.S. Flights to Israel Now Lifted, Flights To and From Tel Aviv Resume – FAA
- Reserve Bank of New Zealand Raises Interest Rates Due to 'Unsustainable' Kiwi
- Embattled Malaysia Airlines Could Run Out of Cash 2015; Diverts Plane Over Another War Zone After MH17 Crash
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon