Press Esc to close
Saturday 26 July 2014
News updated at 10:27 AM IST
Weather
Max: 29.2°C
Min : 20.3°C
In Bangalore
Sunny day

Petrol price may come down by up to Rs 1.50/litre

New Delhi, Sep 12, 2013 (PTI)
File Photo.

Petrol prices may be cut by as much as Rs 1-1.50 per litre next week on falling international oil rates and appreciating rupee but a one-time hike in diesel and possibly LPG rates is still on the cards.

Oil Secretary Vivek Rae said the issue of a one-time hike in diesel and cooking fuel rates "is a political and economic challenge" from which "we cannot run away."

"Some burden has to be borne by consuming population. That is the challenge government faces. It is a political challenge, it is an economic challenge. It is a challenge we cannot run away from," he said speaking at an conference organised by Delhi Productivity Council here.


Rae said subsidy burden has reached unsustainable levels which cannot financed by government budget and oil companies.

Oil subsidy, he said, had risen by Rs 20,000 crore in last two months alone on depreciating rupee that made imports costlier.

With limited financial resources, the government cannot run the risk of inflating the fiscal deficit further as it would lead to further depreciation in the rupee and downgrade in credit ratings, he said.

Later talking to reporters, he said a decision on raising rates beyond the 50 paise a litre increases being effected currently would be taken after considering all options.

"Finance Minister (P Chidambaram) himself has said that the decision has to be considered very carefully. So I guess all aspects will be taken into consideration before deciding what to do next. There are many options available," he said without elaborating.

Officials said the softening in international oil rates and appreciating rupee will translate into a cut in petrol price on September 15/16.

Rae too said that crude prices have come down after reduction in tension in Syria and rupee has also stabilised.

Go to Top

Photo Gallery
Actor Akshay Kumar at an event in Gurgaon...

Actor Akshay Kumar at an event in Gurgaon...

Owner of Jaipur Pink Panther Kabaddi Team Abhishek Bachchan during a promotional event...

Owner of Jaipur Pink Panther Kabaddi Team Abhishek Bachchan during a promotional event...

Sand sculpture with a message “Stop War” at Puri beach of Odisha...

Sand sculpture with a message “Stop War” at Puri beach of Odisha...

A villager on his way to collect drinking water wades through flood waters carrying a vessel...

A villager on his way to collect drinking water wades through flood waters carrying a vessel...

Muslims burn a flag of Israel as they protest against Israel's attack on Gaza, after friday...

Muslims burn a flag of Israel as they protest against Israel's attack on Gaza, after friday...

Army jawans lighting lamps at 'Kargil war Wall Memorial' to pay tribute during the celebrations...

Army jawans lighting lamps at 'Kargil war Wall Memorial' to pay tribute during the celebrations...

Ancient passage stairs found during the underground Jaipur Metro train work at Choti Chopad...

Ancient passage stairs found during the underground Jaipur Metro train work at Choti Chopad...

Gold Medalist India's Abhinav Bindra, Silver Medalist Abdullah Baki of Bangladesh...

Gold Medalist India's Abhinav Bindra, Silver Medalist Abdullah Baki of Bangladesh...

A Malaysia Airlines crew member places a flower next to candles forming the letters MH17...

A Malaysia Airlines crew member places a flower next to candles forming the letters MH17...

Boats head out to the mouth of St. Johns River at dawn during the start of the Greater...

Boats head out to the mouth of St. Johns River at dawn during the start of the Greater...

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