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Fuel price hike: No cascading effect yet

March 17, 2008 15:14 IST

The government on Monday said that there was no immediate impact of the hike in petrol and diesel prices on essential commodities.

"The data show that there is no immediate impact of the hike in petroleum prices (effected on February 15, 2008) on prices of essential commodities...," Minister of State for Food and Public Distribution Kantilal Bhuria told the Lok Sabha in a written reply.

Bhuria also said it is difficult to precisely segregate the impact of hike in petrol and diesel prices from those of other factors on the prices of consumer items, services and other essential commodities.

Impact of some of the factors, including hike in prices of petrol and diesel could be felt only with a time-lag, he added.

According to data placed before the House, rice prices went up to Rs 18 per kg (as on February 22) from Rs 17.50 a kg on the day the hike on petrol and diesel prices was announced.

However, prices of wheat, atta, chana dal, tur dal, sugar, mustard oil, vanaspati, milk and onion did not rise during the period under review.

Delhi Milk Scheme

In a separate reply, Bhuria denied that the Delhi Milk Scheme was catering to areas having high income population. "There are 1,710 sale outlets, located all over Delhi to meet the demand of all income groups," he said.

The minister also said DMS has expanded its sales network in the last three years by providing milk at private shops through distributors so that it is available to the consumers at nearby places.

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