NEW DELHI: Under all-round attack for hiking petroleum prices, Prime Minister Manmohan Singh on Wednesday said the increase is “bare minimum” and “inevitable” to ensure uninterrupted fuel supply.
“It must be appreciated what has been done is the bare minimum with a substantial burden being borne by the government and the oil companies,” the Prime Minister said in an address to the nation.
Singh's address is being seen as an attempt at damage control in the wake of strident attack by the main opposition BJP, left allies and other parties which have asked the government to roll back the hike in prices.
“There are limits to which we can keep consumer prices unaffected by rising import costs. Our oil companies cannot go on incurring losses. This way they will have no money to import crude oil from abroad,” he said.
“I know that the price increases we have had to announce today will not be popular, even though they are only modest,” Singh said in his address explaining the circumstances which forced the UPA coalition government for a fuel price revision.With the centre having taken a revenue hit of Rs 22,660 crore by cutting duties, the Prime Minister asked the state governments to reduce their taxes and levies as well.
“The central government, oil companies and consumers are bearing a part of this immense burden. It is, therefore, incumbent on state governments, many of whom tax petroleum products substantially, to also contribute to this National effort by suitably reducing state taxes and levies,” he said.
“We cannot remain captive to uncertain markets and unsure sources of supply. We have to develop renewable sources of energy, including nuclear energy,” he said.
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