De-regulation of retail prices of petroleum products will not lead to inflation: Panning Commission
merisarkar news service
New Delhi, February 05, 2010
Decontrol will not increase inflation: Montek
The Planning Commission's Deputy Chairman Montek Singh Ahluwalia said on Friday that decontrolling fuel prices would not flare up inflation rather it will help in softening the prices in general.
He told media that it is not sustainable to keep the petroleum prices artificially at a level that is not in line with with the global prices.
He was of the view that use of subsidies to keep the petroleum prices low actually causes generalized rise in prices.
He contended that if we stop giving subsidies on petroleum products there will be rise in their prices. However, it will lead to softening of the inflation in general, in some time.
