Do More With Reuters
Partner Services

India's diesel demand soars, no fuel price cut - min

Wed Aug 13, 2008 1:04pm IST
 
Email | Print | | Single Page
[-] Text [+]

NEW DELHI (Reuters) - India's diesel demand is growing at an unexpectedly high rate of 23-24 percent, the oil minister said on Wednesday, causing shortages in some regions.

In the April-June quarter diesel sales by oil firms rose sharply, registering annual growth of nearly 18 percent, largely due to use of diesel for power generation.

Diesel, sales of which are subsidised, is nearly 10 percent cheaper than fuel oil, which sells at market rates.

"We have called a meeting of (state) oil companies on Tuesday to discuss shortages in some parts like Maharashtra. There is a 23-24 percent unforeseen increase in demand because it is being used in power generation," Murli Deora told reporters.

Deora also said India had no plans to cut fuel prices despite the fall in global crude prices as government-set prices were still much lower than the market.

"Decline in the global oil prices is a welcome development but there is no scope for reduction in domestic prices," he said.

The government would also thoroughly consider the report of a panel, headed by the former cabinet secretary B.K. Chaturvedi, which has suggested higher fuel prices and lower subsidies, the minister added.

Russian Finance Minister Alexey Kudrin poses with his G20 colleagues and central bank leaders during the family photo at the G20 Finance Ministers meeting at a hotel in St. Andrews, Scotland. REUTERS/POOL New
Pledge to support economies

G20 financial leaders pledged to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured.  Full Article | Related Story 

Photo

special coverage

Photo
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.  Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SHOWCASE

Sanjay Sinha
Balancing Act

In India, it is a tough choice between growth, managing inflation and financial stability.  Full Article 

 
Nipun Mehta
Road to Recovery

There needs to be an acceptable balance created between education and healthcare and infrastructure spend, says Nipun Mehta of SG Private Banking.   Full Article 

 
Robot Asimo

Snapshots of Honda Motor's humanoid robot Asimo  Slideshow 

 
Marketing Strategy
Marketing Strategy

Companies are now using direct marketing methods to sell their products.  Full Article 

 
Exit Plans
Exit Plans

Factbox - Stimulus exit plans for Asia-Pacific's big 5 economies  Full Article