-PTI While petrol prices are market-linked, govt fixes LPG, kerosene and diesel rates, which results in huge expenditure on subsidies Making a case for raising prices of diesel, kerosene and LPG, the Reserve Bank today said hike in rates of petroleum products is necessary to arrest fiscal slippages. "Overall from the perspective of vulnerabilities emerging from the fiscal and current account deficits, it is imperative for macroeconomic stability that administered prices of petroleum...

An across-the-board increase in petrol, diesel and cooking gas prices is likely by mid-May, immediately after the Budget is passed in Parliament.  "There is a lot of pressure on the government from oil companies to increase fuel prices but they been informally told to hold on till the Budget is passed in Parliament," a senior government official told HT. "There may be one small increase in petrol price that is likely to...

-The Economic Times Repressed, unrevised retail prices by fiat have led to rising diesel consumption nationwide, thoroughly misallocating resources and recklessly fretting away scarce budgetary funds in the bargain. The government needs to promptly decontrol diesel prices and put paid to open-ended oil consumption subsidies, as it has rightly proposed to in the Union Budget.  Further dither and non-decision would wreak havoc in government finances and hook the fiscal deficit figure over...

One man’s fiscal problem is another man’s lifeline. Trigger happy bureaucrats and economists may love shooting down subsidies because it bloats the fiscal deficit and burdens the government but the simple fact is that in a one billion strong nation, in which nearly one in every three live below the poverty line, one needs an effective and efficient method through which privileged tax payers can support the poor. Last week, finance...

The UPA-II has used the Budget to again play politics with hunger. But it has paid no heed to the ticking time bomb of growing social tensions as 58 million Indians living off agriculture slide deeper into poverty. The Economic Survey says more than half the population is dependent on a sector whose share in the economy is shrinking. The urban-rural income divide is therefore steadily widening, a tinder box that...