STOCK MARKET BSE NSE

Diesel prices to be hiked 40-50 paise every month: Moily

Diesel prices will be hiked by 40-50 paise per litre every month till losses on the nation\'s most used fuel are completly wiped out, Oil Minister M Veerappa Moily said today.

Published: 01st February 2013 01:20 PM  |   Last Updated: 01st February 2013 01:51 PM   |  A+A-

moily_b_EPS
By PTI

Diesel prices will be hiked by 40-50 paise per litre every month till losses on the nation's most used fuel are completly wiped out, Oil Minister M Veerappa Moily said today.

"Until further orders, oil marketing companies can increase it (diesel price) by 40-50 paise (per litre) every month," he told reporters here.

The government had on January 17 decided to move towards deregulating or freeing diesel prices from state control and gave powers to state-owned oil firms to raise prices in small measures every month till all of their losses are wiped out.

Diesel is currently sold at a loss of over Rs 10.80 per litre.

On January 17, oil firms hiked diesel price by 45 paise.

After including local VAT, the increase in Delhi came to 50 paisa. The diesel now costs Rs 47.65 a litre in the capital.

Moily said the decision to raise diesel prices in small doses every month will stand "until further orders". He, however, did not say when the oil firms will effect the second price increase.

The decision for retail price hike was coupled with a move to charge bulk consumers like defence, railways and state transport undertakings market price which is almost Rs 10 a litre more than retail selling rate, to save an estimated Rs 12,907 crore in annual subsidy.

Moily said he had heard of States like Gujarat and Tamil Nadu asking their public transport fleet to refuel at petrol pumps instead of buying diesel from oil firms directly as is the current practice. This is being done with a view to avoid paying the market price mandated for them.

"We need to look into that (issue). I have also heard about it. We are ceased of that matter," he said, adding when rules are laid there are people who find ways to circumvent it.

Instead of buses being asked to refuel at petrol pumps, the states should reduce high local sales tax or VAT on diesel to cut prices, Moily added.

Stay up to date on all the latest Nation news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp