Giving some respite for the oil marketing companies, the country's oil minister, M Veerappa Moily said, “Government will consider a request from oil marketing companies to be allowed to raise diesel prices by more than the approved 50 paise a month, to bridge the losses”. The decision is yet to be taken. However, he ruled out any hike in LPG and Kerosene prices.
In January, fuel retailers were given the freedom to raise the price of subsidized diesel every month, while bulk buyers were asked to pay market rates. Since, then firms for seven times have raised diesel rates, cumulatively taking up the price of the fuel by Rs. 3.75 per litre. Meanwhile, petrol prices have been raised by five times since June. While, petrol price was last hiked by 70 paisa per litre, diesel price was upped by 50 paisa per litre on 31st July this year.
Further while, an increase in diesel prices may see prices of essential commodities go up, there is little the government can do about it, as it tries to rein in the widening current account deficit which is one of the major reasons for the rupee's slide.
In January, fuel retailers were given the freedom to raise the price of subsidized diesel every month, while bulk buyers were asked to pay market rates. Since, then firms for seven times have raised diesel rates, cumulatively taking up the price of the fuel by Rs. 3.75 per litre. Meanwhile, petrol prices have been raised by five times since June. While, petrol price was last hiked by 70 paisa per litre, diesel price was upped by 50 paisa per litre on 31st July this year.
Further while, an increase in diesel prices may see prices of essential commodities go up, there is little the government can do about it, as it tries to rein in the widening current account deficit which is one of the major reasons for the rupee's slide.
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