Government refuses to roll back fuel price hike

July 2nd, 2009 - 3:12 pm ICT by IANS  

New Delhi, July 2 (IANS) Union Petroleum Minister Murli Deora Thursday refused to roll back the increase in fuel prices but said that a revision will be considered when the international crude oil prices come down.
The government Wednesday allowed state-run oil firms to increase prices of transport fuels, resulting in petrol becoming dearer by Rs.4 per litre and diesel by Rs.2 per litre.

After opposition leaders disrupted the start of budget session of parliament over the hike, Deora said that the state oil companies had been reeling from under recoveries, or losses, to the tune of Rs.70,200 crore since the global crude prices increased by 75 percent from December 2008.

He said that the government had not increased the fuel prices by the desired level - Rs.6.94 per litre for petrol and Rs.4.11 per litre for diesel.

Deora added that there was no rise in cooking gas and kerosene prices, for which the state oil companies will continue to bear a subsidy burden of Rs.30,000 crore.

“But we will keep the view of the honourable members on the issue and take suitable action in case there is a decline in the international crude price,” he said.

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