Chandigarh, Jul 7 (IANS): Finance Minister Pranab Mukherjee Tuesday said that the hike in fuel prices was introduced after considering various factors and that it would not cause any surge in inflation.

"The committee concerned had submitted its report about the petroleum products to us in February but keeping in mind public interest, we had implemented it in June. The committee had drafted its report after considering all parameters," Mukherjee told reporters here.

"This price rice will not put any impact on the inflation and it will be less than the one percent of the wholesale price index," he said.

Mukherjee was in Chandigarh to head a meeting of the chief ministers of northern states, including Punjab, Haryana, Himachal Pradesh and Uttarakhand, and heads of public sector banks to review the credit needs of the region and progress of central government schemes.

The minister emphasised on the expansion of banking services in rural areas.

"It is very necessary to provide banking services in rural areas to save poor people from private money-lenders. We have to make optimum use of latest technologies like computers and telephones in this direction," Mukherjee said.