By IANS,
Chandigarh: Diesel prices should not be regulated so that they can be aligned with international levels, Planning Commission Deputy Chairman Montek Singh Ahluwalia said here Wednesday.
“I think diesel prices need to be aligned with global prices as soon as possible. Delaying the price rise by a week or by two weeks is not a solution. Going by what is happening in the global world, it is really difficult to delay it,” Ahluwalia told reporters.
“By not raising diesel prices, oil companies would suffer big losses. Then they would not be able to invest in the development of oil supplies and in such a situation, government has to subsidise it. If the government subsidises, then fiscal deficit will go up,” he added.
Ahluwalia was here to participate in the 93rd annual conference of the Indian Economic Association at the Panjab University campus.
Ahluwalia said the Punjab government, instead of giving subsidy on power, should put more emphasis on improving agriculture infrastructure.
“Providing subsidy only on power may result in its wasteful usage,” he said.
“They should make sure that it is going in the right hands. Farmers should be given subsidies on inputs like fertilizers, pesticides and also on agriculture equipments,” Ahluwalia said.
“Unless we pay for energy and water, we will never be able to judge its value and importance,” he added.
Ahluwalia also expressed concern over the excessive use of groundwater.
“Satellite imagery conducted by NASA has revealed that the condition of groundwater table has gone worse in Punjab and Haryana due to excessive irrigation. The situation is also not good in other parts of the country,” he stated.