PM rules out roll back of petrol and diesel prices

On Board PM's Special Aircraft: Prime Minister Manmohan Singh today ruled out any roll back in petrol and diesel prices, saying the economy has the capacity to absorb the increase without triggering inflationary pressure.

"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 following populist fiscal policies for long harm 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 that may have.