Diesel price might be hiked
Posted on: 30/Oct/2013 5:04:20 PM
A panel was set up the by the Government of India to advise the government on fuel pricing. This panel has recommended that Diesel prices should immediately be raised by about 9.5%.
The recommendations of the committee are not binding and need cabinet approval to be implemented. With state elections looming from November and a general election due by May 2014, the government may find it difficult to raise domestic fuel prices sharply.
India, the world`s fourth-largest oil importer, needs to rein in subsidy spending to help stabilize its finances and support the rupee, which hit a record low earlier this year.
The diesel price hike could cut the government`s fuel subsidy bill by as much as 160 billion rupees from November 1 to the end of the current fiscal year on March 31, 2014.
Diesel accounts for over 40% of refined fuel use in the country.
