New Delhi: The government is planning a higher dose of diesel prices to cut the fuel subsidy bill, Petroleum Secretary Vivek Rae said here yesterday.
“We are circulating the Kirit Parikh report for inter-ministerial consultation. The suggestions for higher dose of diesel price would be part of it,” Rae told reporters on the sidelines of a business partners meet organised by the Confederation of Indian Industry, in the run-up to Petrotech 2014.
The Kirit Parikh panel had recommended a Rs5 hike in diesel prices, Rs250 per LPG cylinder increase in the price of domestic cooking gas, and Rs4 a litre in kerosene prices with immediate effect to cut the fuel subsidy bill by Rs72,000 crore.
He said the focus would be to ensure that upstream companies get about $65 a barrel on sale of crude oil, which is currently in the range of $40-42 a barrel.
Rae also said the government is planning a partial rollback of bulk diesel pricing. The government had in 2013 opted for a dual pricing system for bulk and retail customers. IANS
