NEW DELHI: Montek Singh Ahluwalia, deputy chairman, Planning Commission, today said that decontrolling fuel prices would not flare up inflation...

"It (decontrolling fuel price) will not flare up inflation. I think that it is not sustainable to have prices that are not line with world prices," Ahulwalia told reporters here.

"By keeping the price of petroleum down, you are actually bearing a subsidy that causes a generalised rise in price ...if you get rid of the subsidy, there will be a rise in petroleum prices but it will soften the generalised rise in prices," Ahluwalia added.

The Kirit Parikh committee, which submitted its report earlier this week to Petroleum Minister Murli Deora, has recommended complete freedom for oil companies to price petroleum products.