PM rules out rollback of petrol price hike

Prime Minister Manmohan Singh ruled out any rollback in hike in petrol and diesel prices, saying the economy has the capacity to absorb the increase without triggering an inflationary spiral. Singh also made it clear that following populist fiscal policies for long harmed the economy, two days after key United Pogressive Alliance allies Trinamool Congress and Dravida Munnetra Kazhagam

made a strong pitch for the rollback.

"Any increase in prices does hurt some people, but we have to take a long-term view," he told reporters accompanying him on his way back home from Saudi Arabia when asked about growing concerns over the recent hike in oil prices and the ripple that it may have. The direct effect on the Wholesale Price Index will be no more than 0.40 per cent, he said.