Government compelled to hike fuel price: ReddyAugust 4th, 2011 - 8:30 pm ICT by IANS
New Delhi, Aug 4 (IANS) The United Progressive Alliance government Thursday defended its recent decision to hike prices of diesel, cooking gas and kerosene, saying it was compelled to do so as international crude prices were on an upward trend.
“We were compelled to increase prices,” Petroleum Minister S.Jaipal Reddy said in reply to criticism from opposition members over the price hike.
The prices of diesel were increased by Rs.3 per litre, of kerosene by Rs.2 per litre and cooking gas by Rs.50 per cylinder.
Reddy said, despite the hike, state-run oil marketing companies will incur losses of about Rs.122,000 crore because of selling diesel, cooking gas and kerosene at below-cost prices.
India meets 80 percent of its oil needs through imports. During the current fiscal, the average price of crude has been around $113 a barrel (159 litres).
Reddy said the government had tried to reduce the quantum of increase by cutting customs and excise duties on petroleum products.
Meanwhile, Finance Minister Pranab Mukherjee said that the government would try to deregulate prices of diesel like it had done in the case of petrol.
“We are moving in that direction (of decontrol). There are no other proposals under consideration of the government,” Mukherjee told reporters outside parliament.
- No plan to hike diesel, LPG, kerosene prices: Reddy - May 28, 2012
- Government hikes diesel price by Rs.five a litre (Second lead) - Sep 13, 2012
- No plans to raise diesel prices, roll back petrol rate: Jaipal - Jan 20, 2011
- Fuel price hike politically not feasible: Reddy - Jan 27, 2011
- Diesel, cooking gas and kerosene prices hiked (Lead) - Jun 24, 2011
- Forced to hike petrol prices, say government, oil firms - Nov 04, 2011
- No government role in petrol price hike: Pranab - Nov 05, 2011
- Reddy rules out diesel price hike - Jan 20, 2011
- Fresh petrol price hike of Rs.1.80 per litre - Nov 03, 2011
- No government role in petrol price hike, says Pranab - May 15, 2011
- Petrol price hiked by Rs.6.28 plus taxes, industry welcomes move (Second Lead) - May 23, 2012
- Decision on fuel prices deferred, CCPA meet postponed - Sep 11, 2012
- Oil firms mulling another price hike - Nov 01, 2011
- 'Oil companies will decide on petrol price hike' - Nov 02, 2011
- Ministerial meet to discuss LPG supply, price deferred - Sep 16, 2011
Tags: alliance government, crore, crude prices, decontrol, excise duties, finance minister, fuel price, jaipal reddy, kerosene, litre, marketing companies, opposition members, petrol, petroleum products, pranab mukherjee, price hike, progressive alliance, rs 2, rs 50, upward trend