PM hints at hike in kerosene, LPG prices

Prime Minister Manmohan Singh today hinted at raising the prices of kerosene and cooking gas in the face of surging global oil prices and made a case for better returns to farmers even at the cost of higher food commodity prices.

"How much more can the government treasury bear this (petro-products subsidy) burden?" the Prime Minister wondered while delivering his third Independence Day speech from the ramparts of the Mughal-era Red Fort.

Even though he declared inflation control as a priority, Singh said: "We need to understand that if we want better prices for farmers so that they earn better livelihood, the prices of what they produce and sell will have to go up."

Clearly moved by the plight of agriculture sector that was driving farmers to suicide and concerned over the effects of globalisation like surging international oil prices, where the government was helpless, Singh said higher growth of the economy was a must for "war against poverty."

Listing out a series of measures for promoting employment and furthering the interests of farmers, including the issue of their indebtedness, Singh sought to assuage the fears of the common man on rising prices, saying: "Our government is committed to ensuring  adequate availability of essential commodities at affordable prices to them (poor)." Singh said that prices of kerosene and LPG had not been raised, despite global crude prices more than doubling from $30 a barrel to $75 a barrel in two years.

"But there is a limit to which we can go on subsidisng consumption of petroleum products in the face of rising import costs. At some point, this will affect our ability to spend on other important development programmes," he said while seeking a "political consensus" on the issues of national interest.