New Delhi: Prime Minister Manmohan Singh is believed to have ruled out a rollback in the prices of petrol and diesel, which were raised by Rs 4 and Rs 2 a litre respectively on Monday.
"There will be no rollback. We will face it," Singh is believed to have told Petroleum Minister Murli Deora when he met him on Wednesday afternoon.
Deora is understood to have apprised Singh about the developments related to the hike, including the feedback he got from political parties.
Sources said Singh approved the Petroleum Ministry's publicity campaign which explains why the hike was done. The decision, in tandem with steps like duty cut and issuance of oil bonds, will save national oil companies from bankruptcy.
The Prime Minister asked Deora to explain to the Left parties, which plan to start an agitation from June 13, that the hike was necessary. Deora will in particular talk to West Bengal CM Buddhadeb Bhattacharjee.
Deora refused to comment on his meeting with the PM. "As far as I am concerned, this issue (fuel price hike) is over," Deora said.
The Government raised fuel prices to reduce national oil companies’ deficits, which are pegged at Rs 73,500 crore. It, however, left domestic cooking gas and kerosene prices unchanged.
Deora met Congress President Sonia Gandhi on Tuesday to explain the circumstances leading to the hike. "We have been very reasonable. The barest minimum hike has been passed on to consumers," he said after the meeting.
He has said the hike was done after wide consultations within the UPA Government and with allies. Left parties rejected this.
"The price hike is unjustified and we oppose this hike," Communist Party of India (CPI) leader D Raja said.
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