Prime Minister Manmohan Singh has said that fuel prices should be increased as it is well below international prices. Prime Minister warned that there is all likelihood of rise in the prices of diesel, kerosene and cooking gas.
Sources indicate that the government may consider hiking diesel prices by Rs 2 to 3 per litre and LPG by Rs 50 to 75 per cylinder, in line with the Kelkar committee report recommendations.
"Energy remains under priced in our country, with coal, petroleum products and natural gas prices well below international prices. To meet our target of rapid, inclusive and sustainable growth we must undertake a phased rationalisation (rpt) of energy prices to bring them in line with world prices," Prime Minister Manmohan Singh said on Monday, Jan 7.
Laying the foundation stone of the Rs 20,000 crore BPCL-Kochi Refinery's Integrated Refinery Expansion project at nearby Ambalamugal, Singh said our country needs adequate supplies of energy at affordable prices to achieve its target of rapid growth.