Oil ministry seeks hike in duty of diesel cars to discourage heavy use of subsidized fuel

Oil ministry seeks hike in duty of diesel cars
Being unable to directly increase the prices of diesel, the oil ministry has sought approval for the proposal to increase excise duty on diesel cars. The move is estimated to discourage people from buying cars running on the subsidized fuel.

The proposal is not a new one, but has been pending since long with the finance ministry. The proposal was however renewed by the oil minister Jaipal Reddy yesterday during the Inter-Ministerial Group (IMG) meet.

On the back of the current scenario where the people were recently hit by the sudden hike in petrol prices by Rs 7.5 petrol per litre, the oil ministry could take any further risk of fuelling the inflation by announcing hike in diesel.

"We are not considering hikes in diesel, LPG and kerosene prices. It is out of question right now," said Reddy after the IMG meet.

Diesel is known to be the common man's fuel as it widely used by the people across all region.it is also popularly used following its low price as compared to sky rocketing price of petrol. Thus, the current increase of 11 per cent in petrol price has further created a big gap between retail prices of petrol and diesel. While diesel is selling for Rs 41 a litre in Delhi, the petrol retail rate is above Rs 73 a litre. The current subsidy on diesel is more than Rs 15 a litre.

Dion Global Solutions

Read more about: diesel
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?