Sonia backs fuel price hike, lauds Pranab’s budget

Making it clear that she fully backs the hike in retail prices of petrol and diesel announced by finance minister Pranab Mukherjee in last week's union budget, Congress president Sonia Gandhi told party MPs that Mukherjee had presented a well-balanced budget.

"We have many essential social obligations and to meet them it is necessary to raise resources. I congratulate the finance minister for a fine and delicate balancing act,'' she said at her first meeting with party members of Parliament in six months.

Petrol prices rose about 6 per cent and diesel prices by 7.75 per cent after the government proposed to increase factory-gate taxes and import duties on the fuels.

The Congress president is also expected to talk to allied parties in the United Progressive Alliance today and explain to them the party's position on fuel price hike.

Widely perceived as the eminence grise or power behind the scenes, her word probably carries even more weight with Congressmen and allies than that of Prime Minister Manmohan Singh.

At the meeting with Congress MPs, Sonia Gandhi has said that the issue of food prices is the party's top priority.