Amid rising crude oil prices, the government said it will not take any decision in haste to increase diesel and petrol prices.
Brent crude oil prices have risen to about $116 a barrel from about $103 a barrel on July 1.
"What does the government gain by taking a hasty decision that puts extra burden on the poor? And
Earlier this month, the price of petrol was hiked by a steep Rs 2.35 per litre and diesel by 50 paise, excluding local taxes. The increase in petrol price was the sixth in three months and for diesel the eighth since January.
Noting that fuel prices too add to inflation, Chidambaram said if crude oil prices go up beyond a sustainable level of subsidies, some price rise has to be passed through.
"No one in the government can be happy by increasing petrol prices or diesel prices. If we can afford the subsidy, we should go by the subsidy. To the extent we can afford the subsidy, we are providing a subsidy," he said.
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