PM justifies hike in petrol prices

Unfazed by ally Trinamool Congress' threat of even withdrawing support, Prime Minister Manmohan Singh on Friday virtually justified the hike in petrol prices, saying there should be further movement towards deregulation of fuel prices.
   
Addressing a press conference after the G-20 Summit here, he said the market should be allowed to follow its level.
   
"Well that is the general direction in which we should move. I think the move to decontrol the prices is a part of that process.
   
"But as I said, these are very sensitive areas and I have no hesitation in saying ultimately we must allow the markets to find their own level except for those commodities which are semi public goods," Singh said.
   
He was replying to a question about the all-round opposition back home to yesterday's decision of oil companies to hike the petrol price by Rs 1.80 per litre and TC led by Mamata Banerjee even talking in terms of withdrawing support to the UPA government.
   
"So, the direction of change is clear. We must move in the direction of decontrolling more prices," the Prime Minister said.