'Fuel price hike cripples transporters, economy of country'

'Fuel price hike cripples transporters, economy of country'

Monday, 27 June 2011, 03:09 Hrs
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New Delhi: The Delhi Transporters Association (DTA) protested the hike in price of diesel, saying that it will have a crippling effect on the truckers and transporters - and thus on the economy of the country.

"The hike will fuel the inflationary fire which goes against the interest of the common man. Increase in fuel prices will have cascading effect on the economy of the transporters and the common man," Sundeep Jain, general secretary of the DTA, said in a statement.

"Transporters (truckers) are the backbone of the economy of the country and are a major consumer of diesel. Every hike in the price of diesel has a crippling effect on the economy of the transporters," he added.

Calling for a rollback in the prices and warning of a possible strike, Jain said: "We request the government to reconsider its decision and roll back the hike in fuel prices, lest we may have to consider stopping plying of our vehicles".

Describing the government's decision to raise prices of diesel, cooking gas and kerosene as inevitable, the Prime Minister's economic advisor today said that it would push inflation into the double-digit zone.

"Due to the hike, inflation could be close to 10 percent by July," Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said.

However, he added, the inflation numbers would subside after the initial surge. "I do expect that after initial correction, inflation will come down to 6.5 percent by March 2012," Rangarajan said.

The decision to raise fuel prices, he said, was inevitable in view of the rising crude prices in the global market and its impact on the fiscal deficit. "Since correction was needed in order to contain fiscal deficit, the move is welcome."

The government Friday hiked the price of diesel by 3 per litre, kerosene by 2 per litre and domestic liquid petroleum gas (LPG) by 50 per cylinder, excluding state levies such as VAT.

The overall inflation was 9.06 percent in May, up from 8.66 percent in April. The Reserve Bank had recently said that it expects inflationary pressure to remain high, at an average of 9 percent till September on account of high global commodity prices.

People from all over the country have voiced discontent over the hike, that comes a month after a 5 increase in petrol prices, and said it will be a burden on their home budgets.
Source: IANS
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