On Board PM�s Special Aircraft, March 1 � Prime Minister Manmohan Singh today ruled out any rollback in petrol and diesel prices, saying the economy has the capacity to absorb the increase without triggering inflationary pressure, reports PTI.
�Any increase in prices does hurt some people, but we have to take a long-term view,� he told reporters accompanying him on his way back home from Saudi Arabia.
Singh made it clear that following populist fiscal policies for a long term harms the economy.
�We cannot save people from inflation if we follow all populist fiscal policies. Sooner or later these populist policies if persisted for a long time to come will lead to the erosion of the investment climate,� he said.
The Prime Minister was asked about growing concerns over the recent hike in oil prices and the ripple it may have.
