Hike in fuel prices won't push inflation up: Montek

Hike in fuel prices won't push inflation up: Montek

“The excise hike (on petroleum products) was the right thing to do. I don’t think the hike will stroke inflation,” the Planning Commission Deputy Chairman Montek Singh Ahluwalia said.

Subsidy era
He said “The Centre cannot continue to subsidise petroleum products and Budget 2010-11 is judiciously balanced.”  Besides restoring five per cent customs duty on crude oil, the Budget proposals also hiked customs duty on petrol and diesel to 7.5 per cent from 2.5 per cent respectively. In addition, the excise duty on non-branded petrol and diesel was also raised by Re one a litre to Rs 14.35 and Rs 4.60 per litre respectively.On Finance Minister Pranab Mukherjee’s promise to rollout the Goods and Services Tax by April 2011, Ahluwalia said he was hopeful that the Minister would get the states on board.

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