The government has hiked prices of petrol and diesel prices by Rs 4 per litre and Rs 2 per litre respectively. The government though decided to leave prices of kerosene and liquefied petroleum gas (LPG) untouched. The hike comes into effect from midnight.
Addressing a hurriedly-called press conference, Oil Secretary RS Pandey said the government could not sustain the under-recoveries — amounting to as much as Rs 6 per litre on petrol and Rs 4 per litre on diesel. “It has become necessary to marginally increase the prices of petrol and diesel against the under recoveries,” Pandey said.
The previous UPA government had cut fuel prices in line with falling international crude oil prices, which had plummeted to USD 30s per barrel range in March 2009 from a high of about USD 147 per barrel in July 2008. Oil has picked up since and currently stands at about USD 70 per barrel.
“In case oil prices go down like the way it went to USD 40 per barrel recently, the difference will be passed on to consumers,” Petroleum Secretary Murli Deora said.
The under-recovery on current prices stands at Rs 70,000 crore, of which the price hike will shave of Rs 14,000 crore. The government has committed to bear Rs 30,000 crore as subsidy burden — the final subsidy burden thus stands at Rs 26,000 crore.
source : CNBCTV18
Addressing a hurriedly-called press conference, Oil Secretary RS Pandey said the government could not sustain the under-recoveries — amounting to as much as Rs 6 per litre on petrol and Rs 4 per litre on diesel. “It has become necessary to marginally increase the prices of petrol and diesel against the under recoveries,” Pandey said.
The previous UPA government had cut fuel prices in line with falling international crude oil prices, which had plummeted to USD 30s per barrel range in March 2009 from a high of about USD 147 per barrel in July 2008. Oil has picked up since and currently stands at about USD 70 per barrel.
“In case oil prices go down like the way it went to USD 40 per barrel recently, the difference will be passed on to consumers,” Petroleum Secretary Murli Deora said.
The under-recovery on current prices stands at Rs 70,000 crore, of which the price hike will shave of Rs 14,000 crore. The government has committed to bear Rs 30,000 crore as subsidy burden — the final subsidy burden thus stands at Rs 26,000 crore.
source : CNBCTV18
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