Press Esc to close
Tuesday 30 June 2015
News updated at 3:30 PM IST
Weather
Max: 30°C
Min : 21°C
In Bengaluru
Rain lightly

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
Stranded Chardham pilgrims

Stranded Chardham pilgrims

boy, whose parents say they belong to the Rohingya community...

boy, whose parents say they belong to the Rohingya community...

A worker dries vermicelli, used to make a traditional sweet dish...

A worker dries vermicelli, used to make a traditional sweet dish...

A Muslim man calls for the evening prayer...

A Muslim man calls for the evening prayer...

BJP protest in Delhi

BJP protest in Delhi

A Kashmiri Muslim woman prays...

A Kashmiri Muslim woman prays...

Chennai Metro services launched

Chennai Metro services launched

Anganwadi volunteers protest

Anganwadi volunteers protest

An Indian man pedals a cycle as a boy pushes it through a flooded street...

An Indian man pedals a cycle as a boy pushes it through a flooded street...

Canada Open 2015

Canada Open 2015

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