New Delhi, Sep 11 (ANI): Union Petroleum and Natural Gas Minister S. Jaipal Reddy on Tuesday made it clear that the hike in fuel prices is unavoidable.
“I would like to tell the people, in all humility, that increase is unavoidable. It will not give us pleasure. We will have to perform our unpleasant duty,” he said.
Reddy further said the Cabinet Committee on Political Affairs (CCPA), which is meeting later in the day to decide on the hike, may take a decision in this regard if the matter is listed for discussion.
“I had circulated a note to all the members of the Cabinet Committee on Political Affairs (CCPA) about the problem of increasing under recoveries. As of now, if you project for the remaining period the under recoveries will exceed 1,88,000 crores. And with prices going up further at the global level with rupee not softening, the under recoveries could be anything beyond that,” said Reddy.
“So, I tried to acquaint the members of CCPA about these matters. Yesterday I sent an updated version of the same. Today there is a meeting of the CCPA. This item has not been listed. If it is taken up today, which I said is not likely; some decisions may be taken. If it is not taken up today, the decisions may have to be postponed by a few days,” he added.
Reddy had earlier last Friday denied speculations that oil-marketing companies were going to hike fuel prices.
Reddy said that there was a need to lower the under-recoveries faced by the oil companies by selling fuel at subsidized rates.
“We are facing a tremendous crisis of unprecedented magnitude. However, there is no immediate proposal to hike fuel prices, including petrol. The Cabinet will take the final call,” he said.
With reports that there may be an increase in the prices of diesel, kerosene and LPG, the Bharatiya Janata Party (BJP) had earlier last week alleged that the ruling UPA Government was merely trying to divert the attention of the people, as it is currently embroiled in various scams.
BJP spokesperson Prakash Javadekar had then said this step of the government would be like rubbing salt into the wounds of the common people.
“The government does not want to tell the truth in Parliament. It wants to run away from the coalgate scam and wants to evade the issue of corruption by raising the fuel price,” he said.
Communist Party of India (CPI) leader D. Raja also echoed similar sentiments on the issue, and said that the if the government hikes the prices of fuel then the people of the country would have to face the brunt.
“Once the session is adjourned, government and the oil marketing companies will go for another hike in the price of diesel, petroleum, and other petroleum products and it has become a routine for the Congress led UPA-2 Government. Once the session is over, they will allow the oil marketing companies to hike the price of diesel and petroleum,” said Raja.
According to reports, an increase in petrol, diesel, domestic cooking gas (LPG) and kerosene prices looks imminent after the Finance Ministry said it has no money to provide for fuel subsidy.
Diesel, domestic LPG and PDS kerosene rates have not been changed since June 2011 even though cost of production has soared 28 percent.
State-owned fuel retailers are losing Rs 560 crore per day on sale of diesel and cooking fuel, and are forced to resort to short-term borrowings to meet funds needed for importing crude oil (raw material).
Read more / Original news source: http://manipur-mail.com/hike-in-fuel-prices-is-unavoidable-jaipal-reddy/
