Press Esc to close
Sunday 02 October 2016
News updated at 2:07 AM IST
Weather
Max: 29.7°C
Min : 20.5°C
In Bengaluru
Generally 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
Paralympian Deepa Malik shows her Paralympic medal during inaugural ceremony of Dasara Sports...

Paralympian Deepa Malik shows her Paralympic medal during inaugural ceremony of Dasara Sports...

A view of the Mysuru Palace during the inaugural function of the Dasara cultural programmes...

A view of the Mysuru Palace during the inaugural function of the Dasara cultural programmes...

An India Air Force paratrooper displays his skills during Air Fest 2016 as a part of Air Force...

An India Air Force paratrooper displays his skills during Air Fest 2016 as a part of Air Force...

Narendra Modi with Union Sport Minister Vijay Goyal, Praful Patel, President All India Football...

Narendra Modi with Union Sport Minister Vijay Goyal, Praful Patel, President All India Football...

Tourists watch a one horned rhino with her calf as they cool off, during a elephant safari...

Tourists watch a one horned rhino with her calf as they cool off, during a elephant safari...

Special Flight service 'Akasha Ambari' which is inaugurated and opened to public, Dasara...

Special Flight service 'Akasha Ambari' which is inaugurated and opened to public, Dasara...

Mysuru Royal Scion Yaduveer Krishnadatta Chamaraja Wadiyar's private dusbar, as part of Dasara...

Mysuru Royal Scion Yaduveer Krishnadatta Chamaraja Wadiyar's private dusbar, as part of Dasara...

Women perform Kalash Yatra to Vaisnovdevi Temple to mark the festival of Navratri in Surat...

Women perform Kalash Yatra to Vaisnovdevi Temple to mark the festival of Navratri in Surat...

Pigeon and Parrot are seen at Cubbon park in Bengaluru...

Pigeon and Parrot are seen at Cubbon park in Bengaluru...

Siddaramaiah inaugurates flight service 'Akasha Ambari' from Bengaluru to Mysore...

Siddaramaiah inaugurates flight service 'Akasha Ambari' from Bengaluru to Mysore...

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