"What PM said was right, those who understand economics will agree," said Sharad Pawar. Dr Manmohan Singh declared that deregulation of fuel prices should go on and Pawar is supporting Manmohan.
The State-owned oil companies had increased the price of petrol by Rs 1.82 per litre, within the last two months, secomd time hike in petrol prices.
Mamata had warned the UPA government of withdrawing her power from the centre over the fuel price hike, however, NCP is supporting the central government.
The government is trying to make the allies understand the reason behind the increase in the fuel prices. Manmohan Singh's logic is that if oil companies don't face losses from an increase in petrol price, then the pressure to raise prices of fuels would climb. The rise in fuel prices has increased the anger of allies.
T K S Elangovan was quoted as saying, "We still feel that the government should try, even though it was inevitable."
The latest fuel hike will provide give an opportunity to the opposition party to defeat centre on the issues of inflation and corruption.