Global prices making oil subsidies difficult: Pranab
August 4th, 2011 - 3:28 pm ICT by IANS
New Delhi, Aug 4 (IANS) Finance Minister Pranab Mukherjee Thursday blamed high oil prices internationally for rising inflation in the country and said it was with great difficulty that the government was providing subsidies for petroleum products.
“The international prices of crude oil in May 2004 was $36 per barrel. Today, the price is $107 per barrel. Can I supply oil at the prices when we got it at $36 per barrel today? Should I provide subsidies?” Mukherjee asked while replying to a special debate on price rise in the Lok Sabha.
Noting that there were suggestions from MPs on withdrawing diesel subsidies for passenger car users, the finance minister said he can accept that proposal and see to it that such sections do not get the subsidy.
He said nearly 15 percent of diesel is consumed by the passenger car segment, while 12 percent goes for agriculture and eight percent for power generation.
The opposition has slammed the government on spiralling prices of essential commodities.
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- Fresh petrol price hike of Rs.1.80 per litre - Nov 03, 2011
- No alternative to petrol price hike: Deora - Jan 17, 2011
- Diesel, kerosene and cooking gas price hiked; common man, opposition angry (Roundup) - Jun 25, 2011
- Oil firms mulling another price hike - Nov 01, 2011
- Oil firms ask government to compensate them - Apr 17, 2012
- Inflation will slow by March, says Pranab; opposition flays claim (Roundup) - Nov 22, 2011
- Public fumes, as petrol prices hiked again (Roundup) - Sep 15, 2011
- People have to bear some burden of oil price rise: Mukherjee - Jan 28, 2011
- No government role in petrol price hike, says Pranab - May 15, 2011
- Government compelled to hike fuel price: Reddy - Aug 04, 2011
- Diesel price to go up if inflation comes down: Rangarajan - Oct 20, 2011
- Ministerial panel to decide on diesel price hike next week (Lead) - Dec 15, 2010
- Government decontrols petrol; hikes diesel, kerosene, LPG (Lead) - Jun 25, 2010
- Govt. monitoring crude oil prices: Mukherjee - Feb 02, 2011
Tags: agriculture, car segment, car users, commodities, crude oil, finance minister, global prices, inflation, Lok Sabha, mps, New Delhi, oil prices, oil subsidies, opposition, passenger car, petroleum products, power generation, pranab mukherjee, proposal, subsidy