Govt Will Discuss Fuel Price Hike with Allies, Rollback Difficult: Pranab

Finance minister Pranab Mukherjee has said that the government will discuss fuel price hike issue with its allies but indicated that a rollback would be difficult, reported PTI.

Report said citing party sources that the minister briefed Congress parliamentarians about the salient features of the budget in the backdrop of the demands for a rollback in fuel prices and explained why reduction in the excise duty on petroleum products was difficult.

Mukherjee told them that there were challenges before the government in the current economic scenario, said report.

According to report, the minister is believed to have told the MPs that since no new taxes have been imposed in the budget and the government is expecting a GDP of 8.5 percent from 7.2 per cent in the outgoing financial year, some steps were required to mop up revenues.

This was more so as the government plans to invest heavily in the social sector schemes, report said quoting unnamed sources.

Report said that Mukherjee also gave a comparative chart of the fuel price hike done under the UPA and the NDA respectively in which he explained that the rise in prices of petroleum products was far less during the UPA rule as compared to that of the NDA.

Mukherjee also told the MPs that the minimum support price for foodgrains was doubled under the UPA as compared to that under the NDA, said report.
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