PM indicates fuel price hike

Prime Minister Manmohan Singh today clearly indicated that a hike in petroleum prices was imminent when he said: "No government can spend its way to prosperity. It must be recognised that despite the enormous pressure of high international oil prices, we have moderated its inflationary impact. However, we cannot continue to subsidise energy consumption on this scale."

The PM was speaking at a function to celebrate two years of the United Progressive Alliance government at which Congress President Sonia Gandhi along with the leaders of all the UPA allies were present.

In a quietly self-congratulatory speech, Gandhi said the UPA had travelled a long distance together. "Let us not rest," she said, on a note that could be construed as a warning to the non-performing allies.

In her speech, Gandhi conceded that the constituents of the UPA had different views, but said on some issues there could be no differences. She referred pointedly to the crisis in the agricultural sector that was confronting the government.

In a glossy publication released on the occasion, a collation was presented from several important ministries on those promises in the Common Minimum Programme that had been implemented.