Diesel price hike likely after prez elections
13 July 2012 12:24 AM GMT
Diesel prices may be hiked after presidential elections on 19 July as the government plans to take bold measures to rein in run-away fiscal deficit.
‘Price increase is inevitable. But date and time, nobody can say,’ a top oil ministry source said.
Diesel prices have not been raised since 25 June last year, and state-owned oil firms sell the fuel at a loss of Rs 10.33 a litre.
‘[The price increase] is on the radar for sometime now,’ the source, said refusing to say when the diesel rates would be increased.
Asked if diesel prices can be increased after the 19 July presidential election, the source said, ‘it is your guess’. Though an high-powered ministerial panel had in June 2010 decided in-principle to deregulate diesel prices, the nation's most consumed fuel continues to be tightly controlled by the government. The Empowered Group of Ministers [EGoM], which is authorised to decide on diesel pricing, has not met since 25 June 2011.
It was headed by Pranab Mukherjee earlier. The EGoM has so far not been reconstituted and it is not clear who will head it after Mukherjee's exit.
‘Price increase is inevitable. But date and time, nobody can say,’ a top oil ministry source said.
Diesel prices have not been raised since 25 June last year, and state-owned oil firms sell the fuel at a loss of Rs 10.33 a litre.
‘[The price increase] is on the radar for sometime now,’ the source, said refusing to say when the diesel rates would be increased.
Asked if diesel prices can be increased after the 19 July presidential election, the source said, ‘it is your guess’. Though an high-powered ministerial panel had in June 2010 decided in-principle to deregulate diesel prices, the nation's most consumed fuel continues to be tightly controlled by the government. The Empowered Group of Ministers [EGoM], which is authorised to decide on diesel pricing, has not met since 25 June 2011.
It was headed by Pranab Mukherjee earlier. The EGoM has so far not been reconstituted and it is not clear who will head it after Mukherjee's exit.
Next Story
