The oil ministry has set the stage for a Rs.4-5 per litre hike in diesel rates after the monsoon session of Parliament concludes next week while outlining measures to effect a $20 billion saving in India’s oil import bill.
The hike is expected to be much sharper than the 50 paise increase in diesel and the Rs 2.35 a litre jump in petrol price announced on Saturday as a weak rupee forces the UPA government to consider tough options.
Oil minister Veerappa Moily has written to PM Manmohan Singh saying the rupee’s fall has resulted in underrecoveries in diesel rising to Rs.10.22 a litre, higher than Rs 9.03 /litre in January, despite seven price revisions. Moily has not set out the quantum of the upcoming hike, but sources said the matter is under discussion and a Rs 5 raise is seen as essential.
The hike is expected to be much sharper than the 50 paise increase in diesel and the Rs 2.35 a litre jump in petrol price announced on Saturday as a weak rupee forces the UPA government to consider tough options.
Oil minister Veerappa Moily has written to PM Manmohan Singh saying the rupee’s fall has resulted in underrecoveries in diesel rising to Rs.10.22 a litre, higher than Rs 9.03 /litre in January, despite seven price revisions. Moily has not set out the quantum of the upcoming hike, but sources said the matter is under discussion and a Rs 5 raise is seen as essential.
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