Finance minister Pranab Mukherjee today said that it is not possible to completely insulate the economy from rising fuel prices. There is no way we can completely insulate ourselves from the adverse impact of the rising fuel prices,particularly diesel prices. It has its impact on the economy, he said after delivering a lecture at the foundation day function of Nalco in Bhubaneswar today. The government recently put on hold a decision to raise diesel prices in view of high inflation,despite pressure from State-run oil marketing companies,which are facing the brunt of rising crude oil prices in the international market. Describing the price situation as a matter of grave concern,he,however,exuded confidence that the steps taken by the government will cool down inflation. He said that the measures taken both on supply and demand sides and also by allowing import of essential food items will improve the situation. Food inflation shot up to 18.32 per cent in the week ended December 25,driven mainly by rising prices of vegetables,especially onions,fruits and milk products. Pointing out that fluctuation in prices of some food items was taking place every week,the finance minister said that he has written to all the chief ministers to check hoarding of essential commodities. I have written letters to all the chief ministers that the power which is vested in them under the essential commodities act to prevent hoarding, Mukherjee said.
