On Board Air India One: Prime Minister Dr Manmohan Singh on Saturday indicated that the fuel prices may have to be hiked again if international oil prices escalate further. He also termed the double digit inflation rate ‘worrisome’.
When asked if there will be a review of a recent fuel hike which has been opposed by the UPA’s ally Trinamool Congress chief Mamata Banerjee, he said the government currently provides Rs 1.32 lakh crore as subsidy to mitigate the high international fuel prices and this burden is ‘unsustainable.’
The Prime Minister, while speaking to reporters on board his special flight on his way home from the SAARC summit in the Maldives, said if the international oil prices rise further than any more, subsidies can only aggravate inflation.
On Nov 3, the three state-run oil marketing companies had raised petrol prices by Rs 1.80 per litre. The move came just under two months since the last hike. The hike was to fight depreciation of the rupee and high global crude prices, the firms said.
The latest hike of Rs 1.80 per litre — the 11th time since June 2010 — comes over and above a steep upward revision of Rs 3.14 a litre on Sep 15, 2011.
Petrol is deregulated, giving oil marketing firms the freedom to change retail prices, they still require the government’s approval to effect any changes in the prices of diesel, kerosene and cooking gas. (IANS)