Mixed signals from govt on diesel price hike

Prime Minister's Economic Advisory Council Chairman C Rangarajan on Monday said diesel prices are likely to be hiked in the next two months.

Earlier, the Prime Minister's Economic Advisory Council (PMEAC ) had pitched for a hike in diesel prices and restriction on supply of subsidised LPG cylinder in its 2012-13 Economic Outlook

The report said the extent of under-recoveries in diesel is Rs 12.13 per litre and the subsidy per domestic LPG cylinder is Rs 231. And a Rs 1 increase in diesel price would result in a subsidy reduction of about Rs 7,800 crore, the report said.

However, Minister of State for Petroleum and Natural Gas R P N Singh on Tuesday said that government has no plans at present to deregulate diesel, cooking gas and kerosene prices, in a written reply to the Rajya Sabha.