This week’s good news on food price inflation was evened out by the bad news on fuel prices hike. But, both were along expected lines. Thanks to the so-called “base effect” — the fact that last year this time food prices were rising sharply and since last year’s prices become the denominator in this year’s price ratio, the rate of inflation would be expected to moderate — and to an...

The government is considering several options to rationalise the subsidy on cooking gas such as excluding income tax payers from getting subsidised cylinders, limiting availability per household and higher prices for urban customers to provide this clean fuel in rural areas. “Those who can afford must pay the full price, while subsidised LPG should be made available to the poor,” an oil ministry official said adding that the ministry has...

Technological interventions, innovative and fool-proof delivery mechanisms, constant reviews and fixing responsibility at each level ensure that an effective delivery system is in place. The Public Distribution System in Tamil Nadu is a success story, in its coverage as well as its pricing. Each family, whether below the poverty line or not, is entitled to 20 kg of rice at Re. 1 a kg. The State Government opted for universal coverage...

For LPG and kerosene subsidy, government has to make up from petrol, says Montek Singh Ahluwalia he government should use its money on building schools and hospitals than subsidising oil companies, which were making huge profits because of grant, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said. “The profits shown by the oil companies are largely due to subsidies. We are not supposed to be subsidising the oil companies ... we...

Indicating a new-found determination to stay the course on politically sensitive reform measures, Prime Minister Manmohan Singh not only defended the recent decontrol of petrol prices but also said diesel rates would also be freed of government control. In comments while returning from the G20 summit in Toronto, the PM seemed to be in an assertive mood despite the Opposition calling a bandh to protest fuel price hikes. "The fact...