Petrol, diesel price cut to bring down inflation: PM

New Delhi, Feb 15 (UNI) Prime Minister Manmohan Singh today said the cut in the retail prices of petrol and diesel would check the spiralling inflation.

''It will have a positive impact '' and help bring down the prices of essential commodities, Dr Singh said at a press interaction after his talks with Italian Prime Minister Romano Prodi.

The oil price cut was part of a multi-pronged strategy to rein in inflation, he said.

The government had also taken several other steps, while the Reserve Bank of India yesterday announced measures to curb the flow of money, he pointed out.

Earlier in the day, Petroleum Minister Murli Deora had announced the government decision to reduce the retail price of petrol by two rupees a litre and that of diesel by one rupee a litre effective from tonight.

Dr Singh said the UPA government was determined to check the prices of essential commodities.

Despite several measures taken by the RBI to control rising prices, the headline inflation rate moved up to 6.73 per cent for the week ended February 3, from 6.58 per cent during the previous week.

Replying to another question, Dr Singh said ''appropriate steps'' were being taken to deal with the reported misuse of the stock market by terrorist elements.

''I do not want to create any turbulence in the stock market,'' he said parying a reporters' query on the reported statement of National Security Advisor M K Narayanan on the misuse of the bourses.

Dr Singh also evaded a question on the controversial issue of acquiring land for Special Economic Zones (SEZs).

If the country was able to maintain a growth rate of 10 per cent, there would be enough elbow room to liberalise the economy further, he said.

UNI