No roll back of fuel price hike: Deora

No roll back of fuel price hike: Deora
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First Published: Sun, Jun 08 2008. 12 18 PM IST
Updated: Sun, Jun 08 2008. 12 18 PM IST
PTI
New Delhi: The government has said that it would not roll back the hike in petrol, diesel and cooking gas prices that was effected on 5 June.
“Decision on the hike in prices of petrol, diesel and LPG is final and there will not be any change to it,” Petroleum Minister Murli Deora said in an interview to Hindi news channel NDTV India.
Many states have already slashed sales tax on petrol and diesel and VAT on cooking gas to cushion the impact of the hike on consumers.
The Centre announced an increase of Rs5 per litre in petrol, Rs3 per litre diesel prices and that of LPG by Rs50 per cylinder.
Deora explained that the price hike had become necessary to curb the losses of oil marketing companies.
States ruled by Left parties observed a shutdown, including two days in West Bengal, to protest the price increase.
Had it not been for the increase, the three-state run oil firms BPCL, HPCL and IOC would have lost over Rs225,000 crore in revenues this fiscal and would have run out of cash to import crude.
Although many states, including Delhi, Tamil Nadu, West Bengal and Bihar, have come forward to forego a part of their tax revenues from petroleum products, Deora appealed to other states to reduce sales tax on these fuels to give relief to consumers.
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First Published: Sun, Jun 08 2008. 12 18 PM IST
More Topics: Fuel Prices | Petrol | Diesel | Murli Deora | Crude Oil |