Home Economy Delay in oil price hike to increase inflation: Parekh

Delay in oil price hike to increase inflation: Parekh

By IANS,

New Delhi : With the union government having deferred a hike in oil prices, Planning Commission member Kirit Parikh Wednesday said failure to revise fuel prices would result in under-recovery amounting to around Rs.200,000 crore this year and would lead to a jump in inflation.

“The government is sitting over the decision of increasing oil process. If government doesn’t revise fuel prices at this stage, this year’s under-recovery would be more likely to be around Rs.200,000 crore,” Parikh told reporters on the sidelines of a function here.

He said this is likely to lead to a jump in inflation during the year.

The government Tuesday decided to defer a decision on oil prices.