Diesel price hike of 1 rupee per litre a month proposed

NEW DELHI Wed Jan 9, 2013 6:04pm IST

A driver waits in a taxi for his turn to fill up his tank with diesel at a fuel station in Kolkata June 14, 2012. REUTERS/Rupak De Chowdhuri/Files

A driver waits in a taxi for his turn to fill up his tank with diesel at a fuel station in Kolkata June 14, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

NEW DELHI (Reuters) - The oil ministry has made a proposal to cabinet to raise diesel prices and increase the number of subsidised cylinders available to households to nine a year from the current cap of six, two oil ministry sources said on Wednesday.

"We have moved the cabinet note last week. It has a number of combinations including the ... recommendation of raising diesel prices by one rupee per month for 10 months," one of the sources said.

The other source said the government would also consider raising the cap on LPG cylinders from six to nine.

"The Cabinet proposal has been moved but it is not listed for tomorrow's meeting," he said.

India, which imports more than 80 percent of its fuel needs, liberalised petrol prices in June 2010 but continues to regulate diesel prices to protect the poor.

Prime Minister Manmohan Singh has recently said the country must gradually bring local fuel prices in line with global prices.

(Reporting by Nidhi Verma; Editing by Jo Winterbottom)

FILED UNDER:

Reuters Showcase

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Market Eye

Market Eye

Sensex, Nifty end higher after bumpy budget-day trading  Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage