Unfazed by large scale protests over diesel price hike,Prime Minister Manmohan Singh on Saturday asserted it was a step in the rightdirection and expressed the hope that economy would rebound in the second halfof the current fiscal.
"The recent increase in diesel prices is an importantstep in the right direction," he said while addressing the meeting of theFull Planning Commission which was called to approve the 12th Five Year Plandocument.
The Prime Minister also made a case for comprehensive reviewof energy policy saying it was vital for energy security of the country.
Energy, Singh said, "is a difficult area where policyneeds a comprehensive review. We are energy deficient and import dependence isgoing up. It is vital for our energy security that we increase domesticproduction and also increase the energy efficiency.
"Rational energy pricing is therefore critical. Ourenergy prices are out of line with the world prices", he added.
The government had recently increased the price of diesel byRs 5 a litre and capped the use of subsidised LPG cylinder to six in a year perfamily, evoking sharp protests all over the country.
