Sat, 15 Sep 2012 12:02:02 GMT | By PTI

Diesel price hike a step in right direction: Prime Minister

New Delhi: Unfazed by large scale protests over diesel price hike, Indian Prime Minister Manmohan Singh on Saturday asserted it was a step in the right direction and expressed hope that the economy would rebound in the second half of the current fiscal.

Diesel price hike a step in right direction: Prime Minister (© Reuters)

"The recent increase in diesel prices is an important step in the right direction," he said while addressing the meeting of the Full Planning Commission which was called to approve the 12th Five Year Plan document.

The Prime Minister also made a case for comprehensive review of energy policy saying it was vital for energy security of the country.

Energy, Singh said, "is a difficult area where policy needs a comprehensive review. We are energy deficient and import dependence is going up. It is vital for our energy security that we increase domestic production and also increase the energy efficiency.

"Rational energy pricing is therefore critical. Our energy prices are out of line with the world prices", he added.

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