Saying that people will comprehend the threats of excessive populism, Prime Minister Manmohan Singh stated that diesel costs will also be decontrolled on the lines of petrol during the last week.

On the way back to the National Capital after attending the G20 Summit in Toronto, Dr. Singh said, "Subsidies for petroleum products have reached a level which is not connected to sound financial management of our economy."

"The fact that petrol prices have been set free, the same is going to be done to the diesel prices-much needed reforms," he said, referring to the decision of an empowered group of ministers Saturday.

The ministerial board chaired by Finance Minister Pranab Mukherjee permitted state-owned fuel retailers to freely fix the petrol prices, whereas on diesel any increase over and above Rs 2 per litre was subjected to a nod from the oil ministry.

PM also said that these alterations, comprising those on the prices of kerosene and cooking gas, were vital, considering the high amount of subsidy, which was implicit in the pricing structure of these fuels.

Dr. Manmohan also said that he had only read the opinions of opposition parties, but as far as he was concerned people would be grateful for the compulsions the administration had been subject to undertake this measure.

"Our people are wise enough to understand that excessive populism should not be allowed to derail the progress our country is making, and for which it is winning kudos internationally as well," he added. (With Inputs from Agencies)