No plan to hike diesel, LPG, kerosene prices: Reddy

"I am not touching the prices of diesel, LPG or kerosene," Reddy told reporters when asked about the possibility of hike in prices of these products.u00a0

u00a0

The state-run oil marketing companies last week announced the sharpest ever increase in petrol prices. In Delhi, petrol raised by Rs.7.54 per litre.

u00a0

There has been speculation that the government might also increase prices of diesel and cooking gas to reduce subsidy burden.u00a0

u00a0

Reddy also ruled out possibility of introducing dual pricing mechanism for diesel and cooking gas, but said his ministry has recommended raising taxes on diesel-driven vehicles.u00a0

u00a0

"I am not thinking of dual pricing at all," the minister said.

u00a0

Reddy said he has discussed with Finance Minister Pranab Mukherjee the inflationary impact of the possible increase in diesel and cooking gas prices.u00a0

u00a0

The government provides subsidies of Rs.31 per litre on kerosene, Rs.13.64 per litre on diesel and Rs.479 for each cylinder of LPG.u00a0

u00a0

Due to weakening rupee and high prices of crude oil in the international markets, oil subsidy burden on the government is set to rise substantially. It is also putting heavy pressure on the balance sheets of oil marketing companies.u00a0

u00a0

Oil marketing companies claim they are losing over Rs.500 crore per day on sale of diesel, kerosene and domestic liquefied petroleum gas (LPG).u00a0

u00a0

Reddy said no date has been fixed yet for the meeting of ministerial panel to review subsidies on petroleum products.u00a0

u00a0

The Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee was scheduled to meet last week to discuss oil subsidy. But the meeting was postponed.u00a0

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!