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Diesel, LPG hike decision in a few weeks: oil secretary

Govt is considering Rs3-5 hike in diesel prices

Reuters New Delhi
Last Updated : Sep 12 2013 | 1:21 PM IST

The government will decide on raising the retail prices of diesel and cooking gas (LPG) in a few weeks, the oil secretary said on Thursday, in a bid to cut the biggest item in its import bill and support the local currency.

India, the world's fourth-biggest oil consumer, is considering a Rs 3 to Rs 5 hike in the price of diesel, which accounts for more than 40% of fuel use, government officials said last week, as the country looks to cut import costs by nearly $20 billion to trim a record current account deficit.

A recent sharp recovery in the rupee, which had hit a record low of 68.85 to the dollar on August 28, and a fall in global crude prices following an easing of geopolitical tensions -- with an attack on Syria appearing less imminent -- have taken off some pressure from the government finances, Vivek Rae said.

Fuel price rises generally provoke stiff resistance from opposition parties, and any increase now is expected to draw a bigger protest as India approaches a general election.

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First Published: Sep 12 2013 | 1:08 PM IST

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