The Oil Ministry is considering a hike in diesel prices of atleast Rs 5 per litre to ease the subsidy burden on oil marketing companies (OMCs). A hike lesser than that will be of no use as the under-recovery burden stands at Rs 10.22 per litre, reports CNBC-TV18's Nayantara Rai, quoting sources.
Efforts at the ministry are on to move the Cabinet immediately after the conclusion of the Parliament’s monsoon session. Sources say that the decision, though politically unpopular, needs to be taken as it will actually benefit the OMCs. Also read: Seek one-time hike in diesel price: IOC The Finance Ministry is expected to give its go ahead, keeping in mind the need to finance deficits. The industry’s under-recovery currently stands at Rs 1,40,000 crore against Rs 80,000 crore pegged for the full year. The monthly price hike of 45-55 paise on diesel may also be increased furthermore, OMC sources say. However, sources in the oil ministry say that no final decision has been taken yet. The cabinet note on one time price hike is also not ready.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
