Opposition to fuel price hike completely illogical: Montek

The Planning Commission today described the political opposition to the fuel price hike as “completely illogical”, even as the BJP-led National Democratic Alliance (NDA) and Left Parties went ahead with a nationwide strike to protest against rising prices.

“It is completely illogical to oppose the fuel price hike unless it is your view that you should drive the country into economic policies which do not make any sense,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of a conference on developing state highways.

“Even with the price hike, kerosene is heavily subsidised. Both LPG and kerosene are still heavily subsidised. They are still cheaper in India than in Sri Lanka, Bangladesh and Nepal. The notion that prices have been raised usually and unfairly is not actually correct,” Ahluwalia said.

Admitting that inflation is high currently, Ahluwalia said, “Allow a little bit of time. When people perceive that global demand is good and there are good signs of monsoon, the inflation will be back in comfortable zone by the end (of) this year (December).”

He further said that by December, “The inflation will be lower and growth will be good.”

During the current fiscal, the economy is expected to grow by around 8.5 per cent, up from 7.4 per cent in the previous fiscal.

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