Oil Min says 'immediate' need to hike fuel prices

  • PTI, Amritsar
  • Updated: May 22, 2012 18:57 IST

With rupee depreciation leading to jump in oil import bill, petroleum minister S Jaipal Reddy on Tuesday said there is an immediate need to raise fuel prices, but refused to say when the hike will actually take place.

"It (price increase) is very essential but (before hiking rates) we have to talk to political parties," he told reporters in Amritsar, on way to Ashgabat for signing of the agreement for the Turkmenistan-Afghanistan-Pakistan-India pipeline.

The government had decontrolled petrol price in June 2010 but rates were last increased on November 4, 2011. This despite oil price rising by 14% and 7% fall in value of rupee against the US dollar.

Price of diesel, kerosene and cooking gas were raised in June 2011.

"If rupee depreciates by one against the US dollar, our oil companies lose Rs. 8,000 crore (annually)," Reddy said. "Rupee yesterday dipped (to an all-time low of) Rs. 55 (to a US dollar). Last year it was Rs 46. This translates into a loss of Rs. 72,000 crore (on account of rupee depreciation) this year."

"Seeing all this, something needs to be done, but when will it be done, how it will be done... I cannot make a forecast," Reddy said. "There is no decision on raising price or not raising prices".

State-owned oil firms, who had in the fiscal ending March 31, 2012 lost Rs. 4,860 crore on petrol sales, are currently losing Rs. 6.28 per litre on petrol. After including 20% VAT, the desired increase in petrol price in Delhi comes to Rs. 7.53 a litre.

From Around the Web
Sponsored by Revcontent

also read

Rupee slumps to record low at 55.39 vs US dollar, RBI still absent
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome