A central government panel headed by the union Finance Minister Pranab Mukherjee s scheduled to meet on Friday to discuss possible hike in the prices of diesel, liquefied petroleum gas and kerosene in the country following the highest ever hike of Rs 7.50 in petrol prices.

According to a government official, the oil ministry is expected to present a proposal on hiking the prices of diesel to the panel. Mukherjee said today that the country’s economy is resilient enough to overcome challenges and added that the government will ensure that the rate of price rise in moderate and it will aim a reducing the current account deficit (CAD).

"I have full faith in the resilience of the Indian economy and am sure that we will be able to overcome the current economic challenges successfully as we have done in the past, many times. Our efforts are directed towards overcoming difficulties facing the economy and aim at moderate inflation and have acceptable level of fiscal deficit and CAD," he said.

He was speaking at a meeting of the probationary officers of the Indian Economic Service (IES) at his office in the national capital.