Advertisement

HindustanTimes Thu,17 Apr 2014

Rs. 10 diesel price hike likely over 10 months

HT Correspondent , Hindustan Times  New Delhi, December 27, 2012
First Published: 15:29 IST(27/12/2012) | Last Updated: 01:31 IST(28/12/2012)

Diesel prices may go up by Rs. 10 a litre in the next 10 months, while kerosene will be dearer by the same amount over a two-year period, if the government accepts a petroleum ministry proposal.

Advertisement

An official said on Thursday the ministry would seek an increase of Rs. 1 a month in diesel prices, which were raised last time by Rs. 5 a litre in September. Diesel costs Rs. 47.15 a litre, while kerosene, untouched since June last year, costs Rs. 14.79 in Delhi.

“We are left with no choices,” the official said on the sidelines of Thursday’s NDC meeting where the PM called for aligning domestic prices with global rates.

“Energy is underpriced in our country,” Singh said, arguing the need for checking the mounting subsidy bill.

He said, “Immediate adjustment of prices to close the gap is not feasible. I realise this, but some phased price adjustment is necessary.”

The oil ministry’s proposal to hike diesel prices follows the recommendations of a committee headed by former finance secretary Vijay Kelkar.
“The losses (due to subsidies) have reached unsustainable levels,” the petroleum ministry official said.

Oil companies have been selling diesel and kerosene at prices much below costs despite hikes in global crude prices and a persistently weak rupee pushing up the import costs further.

Advertisement
more from Business

'India's ratings to depend on new govt policies'

Standard and Poor's may upgrade India's outlook if the government that is elected next month addresses some of the country's fiscal and economic challenges through steps such as passing a goods and services tax.
markets
Advertisement
Most Popular
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved