The petroleum ministry said that the increase in fuel prices yet another time could not be avoided as the rupee depreciated in the international market and the losses being faced by the oil companies in the world. The ministry, however, said that the decision cannot be implemented without taking all the political parties into consensus.
Petroleum minister S Jaipal Reddy, who left for Turkmenistan on Wednesday to sign a pact on gas, spoke to the media in Amritsar. He has said that it was very essential to hike the fuel prices including LPG. The ministry has also made a proposal to discontinue domestic gas to the households with an annual income of six lakh rupees and above.
It may be recalled that the prices of diesel and domestic gas were increased last year and within 24 months the ministry wants to increase prices.
We will have to wait and see whether this decision will be welcomed by the public who are already irked over continuous increase of taxes.