Reddy rules out diesel price hike

New Delhi, Jan.20 (ANI): New Petroleum and Natural Gas Minister S.Jaipal Reddy on Thursday ruled out any increase in diesel prices, even though oil companies are losing Rs.7 per litre on the sale of transport fuel.

Interacting with media here after assuming charge of his office, Reddy said there was no proposal to increase in diesel prices, and added that a deregulation of diesel prices would take place in due course.

He also said that there would be no rollback of petrol price, which has been raised seven times since its deregulation in June, 2010.

Reddy revealed that the three state-owned fuel retailers-Indian Oil, Bharat Petroleum Corporation and Hindustan Petroleum Corporation -- are expected to lose Rs 72,000 crore in revenue this fiscal on account of subsidised fuel sales.

He said that Petroleum and Natural Gas Ministry would press for a reduction in customs on crude oil and excise duty on diesel, as was proposed by his predecessor, Murli Deora.

Reddy met with senior ministry officials and said that as a "new minister in an old government", he was morally and politically accountable for all the policies and decisions taken by his predecessor. (ANI)