Diesel prices are expected to be hike by Rs. 10 per litre over the next 10 month time period, while over next two years, kerosene prices are likely to rise by Rs. 10 per litres, Oil Minister said.
However, all is based on petroleum ministry whether to accept proposal or not.
Past data showed, price of Diesel and Kerosene prices have not been revised from last 3 months. And the move to hike price is expected to promoting LPG and natural gas usage as fuel that help to eliminate few percent of consumption of the kerosene.
Reports said that hiking in fuel price is lead to the government scrambles seeking to meet an unprecedented Rs. 160,000 crore expected deficit on selling diesel, cooking gas (LPG) and kerosene below their market price.
Moreover, State-owned oil companies -Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp together have complained the loss of Rs 9.28 per litre at present over selling of diesel.
Govt is likely to take go up step within next 10 months to eliminate all of the losses as promising to cash support of Rs 30,000 crore. While Prime Minister Manmohan Singh said to cap on subsidies on energy products, but with some phased price adjustment.
Meanwhile, govt is seeking to cap on subsidy on the nation’s most consumed fuel because of widen fiscal deficit due to high subsidies.