Import Costs: Rise in fuel prices inevitable, says PM Singh

He adds that prices will rise as the Congress government fights corruption and inflation

NEW DELHI: Indian Premier Manmohan Singh said that India must raise fuel prices to balance constantly rising import deficits, after refiners threatened to increase petrol prices to offset their losses. Singh explained that with imports accounting to 80% of oil supply have put a strain on the import bill and India has to increase efficiency and reduce wastage to curb the crisis. He also warned that prices will rise as the Congress government fights corruption and inflation, currently at 11%. The high cost of imported fuels blamed for expanding country’s current account deficit to its widest level in 8 years. Standard & Poor’s has cut down India’s credit rating due to balance of payment deficits.

Published in The Express Tribune, April 29^th, 2012.