Friday, 13 July 2012

News Hour- Diesel price hike likely after presidential polls on July 19: Source

NEW DELHI: Government is likely to raise diesel prices after presidential polls on July 19, an oil ministry source said on Thursday, as the government attempts to cut the amount of money it pays out to keep prices lower. 

"This has been the thinking for quite some time," that a price rise could come after presidential polls, the source said, requesting anonymity. 

"It is inevitable. By how much I can't say," he added. Government heavily subsidises diesel prices as the fuel powers much of the economy, especially in farming and transportation. 

The source added that gasoline prices - ostensibly already freed from government controls - were currently not causing any losses for India. 

"It is under control, there is volatility both on the rupee front and oil prices (global) at the moment we are not incurring any loss," the source said.


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