Oil Ministry mulls hike in prices of diesel, kerosene

 

Diesel prices may be hiked by Rs 10 per litre over a 10-month period and kerosene rates increased by same quantum over the next two years if a proposal being mulled in the Oil Ministry is accepted.

The price hike is being considered as the government scrambles to find ways to meet an unprecedented Rs 160,000 crore deficit expected this fiscal on selling diesel, cooking gas (LPG) and kerosene below their production cost.

Price of diesel, which currently costs Rs 47.15 per litre in Delhi, was last revised on September 14 when it was hiked by a steep Rs 5.63 per litre. Kerosene rates have not changed since June last year and it currently costs Rs 14.79 per litre in Delhi.

“We are left with no choices... there is a need to raise prices. The government is contemplating raising diesel prices by Re one per litre each month for next 10 months to bring retail rates at par with their cost,” an Oil Ministry source said here.

State-owned oil companies currently sell diesel at a loss of Rs 9.28 per litre and the hikes over the next 10 months will eliminate all of the losses and absolve the government from providing any subsidy on the nation’s most consumed fuel.

with thanks : The Hindu : LINK : for detailed news.