A hike in diesel prices is expected in the next two months, the Prime Minister's Economic Advisory Council (PMEAC) chairperson C Rangarajan said on Monday. 'I think it will happen,' he told a TV channel when asked if diesel price increase could happen in the next two months.
He, however, added PMEAC's role is only to emphasise what needs to be done and the decision has to be taken by the government. 'The decision finally will have to be taken by the government as a whole. Several ministries are involved in this ... I think our role is only to indicate what needs to be done...,' he added.
In the Economic Outlook for 2012-13, the PMEAC had suggested that the government could raise diesel prices in one or more steps. The report said that priority consideration may be given to a suitable increase in the price of diesel, which is being sold at subsidised rates, to contain the fiscal deficit.
Widening fiscal deficit, which touched 5.8 per cent of GDP last fiscal, is a concern for the government.
He, however, added PMEAC's role is only to emphasise what needs to be done and the decision has to be taken by the government. 'The decision finally will have to be taken by the government as a whole. Several ministries are involved in this ... I think our role is only to indicate what needs to be done...,' he added.
In the Economic Outlook for 2012-13, the PMEAC had suggested that the government could raise diesel prices in one or more steps. The report said that priority consideration may be given to a suitable increase in the price of diesel, which is being sold at subsidised rates, to contain the fiscal deficit.
Widening fiscal deficit, which touched 5.8 per cent of GDP last fiscal, is a concern for the government.