Click to play videoNew Delhi: Prime Minister Manmohan Singh on Wednesday asked the nation to tighten its belt and conserve energy after his Government hiked the prices of petroleum fuels.
“You are all aware that two important external factors have been responsible for higher inflation. First, rising food and commodity prices around the world and second, rising world oil prices,” said Singh in a televised speech
"I know that the price increases we have had to announce today will not be popular, even though they are only modest."
‘Business can’t go on like this’
Singh said the Indian economy is largely self-sufficient in food, but is not blessed in a similar manner as regards oil. "We are therefore vulnerable to global trends in oil crisis," he said, adding that in the past four years the crude oil prices have increased over three times from $39 per barrel in May, 2004 to $130 per barrel.
The Government, at a great cost to its finances, has ensured that the impact of the global oil shock is minimal on India. But "business cannot go like this forever. We need to learn to adjust to this new international scenario.
“There are limits to which we can keep consumer prices unaffected by rising import costs. Our oil companies cannot go on incurring losses. This way, they will have no money to import crude oil," he said.
“It must be appreciated what has been done is the bare minimum with a substantial burden being borne by the Government and the oil companies."
As the Centre had taken a revenue hit of Rs 22,660 crore by cutting duties, the Prime Minister urged states governments to reduce their taxes and levies as well.
"The Central government, oil companies and consumers are bearing a part of this immense burden. It is, therefore, incumbent on state governments, many of whom tax petroleum products substantially, to also contribute to this national effort by suitably reducing state taxes and levies."
Pushing US-nuclear deal
Singh used the speech to push the Indo-US nuclear deal and urged the country to tap alternate sources of energy. "We cannot remain captive to uncertain markets and unsure sources of supply. We have to develop renewable sources of energy, including nuclear energy," he said.
Singh urged Indians to conserved petroleum. “To begin with, each one of us can conserve energy and contribute to national security. I urge every citizen to conserve energy at every step, every minute of the day. Be it petrol, diesel, kerosene, LPG, electricity or even water - let us learn to save and use efficiently. Let us reduce wasteful consumption of petrol.”
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