Deora defends petroleum products price hike

India’s Petroleum Minister Murli Deora, strongly defended the recent price hike in auto and cooking fuels and the decision to decontrol petrol prices. Deora said the government has made it clear that in case international oil prices display high volatility, the government will suitably intervene in the pricing of these products. Deora said that the primary objective behind the pricing reforms undertaken by the government is the growing imperative for fiscal consolidation, the need for reducing the subsidy burden on petroleum products in order to allocate more funds to social sector schemes such as health, education and food security and to ensure the country’s energy security in the long-run. (July 31, 2010)