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When increasing price of crude in the international market is exerting a pressure over the Indian government to raise the fuel price, Prime Minister Manmohan Singh on Monday said that government is not in a position to fully insulate the consumer from the impact of rising oil prices.

On one side when the political parties including the Left are opposing hike in fuel prices, Prime Minister warned that the government could insulate poor people “up to a point” and economic pricing of oil was essential to sustain growth.

“We cannot allow the subsidy bill to raise any further.” said Singh addressing the Assocham’s annual meeting in New Delhi.

Prime Minister, however, ensured that the Indian economy will grow at 8 per cent and above despite of global slowdown. India has maintained the economic growth of 9 per cent and above for the last three years.

Fuel crisis is a cause of concern in the country as well as the world now-a-days. Despite the crude oil prices crossing the range of 127 dollars a barrel in the market and causing huge losses to the state-owned oil marketing firms, Indian government has not been able to pass on the burden due to lack of political consensus.

There are differences within the government also as to how to resolve the crisis. Finance Ministry is opposed to duty cuts sought by the Petroleum Ministry as also the Left parties.

Due to these differences the fuel hike decision is delayed day after day. According to the current reports the government has said that the decision is expected to come in this week.

Tags: Essential Commodities, Fuel Price, LPG, MM Singh, PM, Price, Price hike

Congress on Monday said that the increasing prices of commodities are not happening in India only but it’s a global phenomenon.

All India Congress Committee (AICC) Media Department Chairman, M Veerappa Moily, told reporters that the party would ask the government to ban future trading in more farm items. It had affected such a ban with regard to some agricultural commodities including wheat.

Moily told that necessary measures are taken to slow down the current inflation and some more steps will be exercised in this regard. He cited the example of China where it is at a 12-year high with a rate of 8.7 per cent for February 2008 as the highest in last 12 years. There is a staggering rise in pork and vegetable prices seen in China.

On a day when the Left parties asked the Government to bring down prices of essential commodities within a fortnight, Moily said that the prices of both the commodities in China have risen by 63.4 per cent and 46 per cent respectively and there has been a sizable increase in the prices of food, fats and oils and grain in low and middle income countries in six months ending February 2008.

When asked whether a meeting of the Congress Working Committee will be held to discuss the issue Moily told that till now no date is fixed but the matter is considered by the Congress President.

Tags: Commodities, Congress, Price, UPA