February 11, 2010 7:54 PM

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Montek wants oil subsidies to discontinue

Planning Commission Deputy Chairman Montek Singh Ahluwalia has said it would be a bad idea to continue with subsidies to keep oil prices subdued. Releasing a report on Post-Crisis Growth in Developing Countries in New Delhi, Mr Ahluwalia said, it would be a bad idea to continue with energy subsidies on the assumption that commodities prices will not rebound after crisis. Recently, Ahluwalia had said decontrolling fuel prices will not flare up inflation, but rather it will soften generalised rise in prices. Last week, an expert group headed by former Planning Commission member Kirit Parikh, had suggested freeing of fuel prices.

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