Press Esc to close
Wednesday 25 May 2016
News updated at 4:31 PM IST
Weather
Max: 34°C
Min : 22.7°C
In Bengaluru
Partially cloudy

No rollback in diesel price hike: Moily

Jaipur, Jan 19, 2013 (IANS):
File Photo

Petroleum and Natural Gas Minister M. Veerappa Moily Saturday ruled out the possibility of government rolling back the decision allowing Oil marketing Companies (OMCs) to revise diesel prices from time to time.

"India is the only country where we have the regulation of the diesel prices. We have to pay dollars and billions of crore are paid. If we go on paying in dollars ultimately the country will become bankrupt," Moily said, when asked if government was contemplating rolling back the partial deregulation of diesel prices as demanded by the entire opposition and parties supporting the government.

Diesel accounts for 59 percent of the estimated Rs.160,000 crore fuel subsidy bill of the government in 2012-13. The decision is expected to cut the subsidy bill by Rs.12,900 crore as a result of the hike in price of diesel sold to bulk consumers like the Railways and state transport undertakings.

The oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss they incur on the fuel.

The minister said continuing the heavy fuel subsidies will only burden the economy.

"What will happen if the fiscal deficit rises? Our ratings and investment will come down. Nobody will come and invest and when it comes down then we become a junk state," Moily said.


Go to Top

Photo Gallery
Girls cover themselves during a dust storm in mathura on Monday...

Girls cover themselves during a dust storm in mathura on Monday...

Renowned sand artist Sudarsan Pattnaik creates a sand art to aware people about water scarcity...

Renowned sand artist Sudarsan Pattnaik creates a sand art to aware people about water scarcity...

English actor Sir Ian McKellen and Bollywood actor Aamir Khan share lighter moments...

English actor Sir Ian McKellen and Bollywood actor Aamir Khan share lighter moments...

A senior Army Officer presents the Sher-e-Kashmir Sword of Honour to a new recruit...

A senior Army Officer presents the Sher-e-Kashmir Sword of Honour to a new recruit...

People watching the air ambulance which crash landed at Kair village in Najafgarh area...

People watching the air ambulance which crash landed at Kair village in Najafgarh area...

Demi Moore poses for photographers as she arrives for The Vogue 100 Gala Dinner...

Demi Moore poses for photographers as she arrives for The Vogue 100 Gala Dinner...

Nuremberg and Frankfurt players jump for the ball during a German first division Bundesliga soccer..

Nuremberg and Frankfurt players jump for the ball during a German first division Bundesliga soccer..

People hang fish to dry on bamboo poles in Mumbai...

People hang fish to dry on bamboo poles in Mumbai...

A cyclist with his daughter pedals his cycle holding an umbrella...

A cyclist with his daughter pedals his cycle holding an umbrella...

An elderly vendor waits for customers of green grass during rains in Srinagar....

An elderly vendor waits for customers of green grass during rains in Srinagar....

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523