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

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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)

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Comments (1)
jvaishnav47 wrote:
People of India do not mind price hike of diesel since they are aware
international price of crude oil has increased.
Similarly what is appeal of people of India that Govt must control corruption, control leakages.
Central/state govts have incurred debt, have deficit budget, even though govt plots are being sold at throw away price to private parties, so called trusts.
Govt has to give up control from public sector undertakings which were
not viable & shall not be viable.
Got is requested to concentrate more on bringing back unaccounted money lying in foreign Banks, recover from nabbed on charges of corruption/scams

Jan 09, 2013 8:56am IST  --  Report as abuse
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