Government has deferred the announcement of measures to curb crude import bill, reports CNBC-TV18’s Nayantara Rai.
Earlier, the announcement was suppose to come on September 16 which has now been delayed to October 1, when Veerappa Moily is expected to announce measures on how to cut the countries USD 160 billion oil import bill by USD 19-20 billion.
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According to sources, the petroleum minister will try and contain the petroleum product consumption in the country just like last year. There was a projection that it was expected to grow at about 4.1 percent and in case it is contained to last year’s levels, the ministry might save around USD 7 billion.
The oil ministry believes that a fuel price hike, the quantum of which will be decided closer to the Cabinet meet, will also help in containing consumption. It is a trend that was noticed, ever since LPG cylinders have been capped there has been a saving as far as LPG is concerned.
Increasing crude oil imports from Iran within the sanction limits, oil ministry believes that could help in saving about USD 8-9 billion. There will also be a major conservation drive all through the country at an investment of Rs 17.5 crore, which the government believes will be part of trying to save USD 1 billion.
There will also be external commercial borrowings (ECB) limit for the oil marketing companies expecting an inflow of about USD 3.75 billion. So, these are all the steps that are likely to be announced on October 1.