Fuel hike likely post Budget session: Fin Secy

A fuel price hike may just be a few days away- with OMC under-recoveries rising sharply. In an interview to CNBC-TV18, Finance Secretary RS Gujral said that LPG, diesel and kerosene will see price hikes after the passage of the finance bill.

“FM had mentioned there are certain actions which can be taken in the budget and there are certain actions that can be taken outside the Budget. So, clearly after the Budget process is through, after the finance bill is passed, then the government need to take action on an administrative plane which are off budget,” he said.
The government provided for Rs 40,000 crore in the Budget towards fuel subsidy and upstream oil companies will chip in with another Rs 68,220 crore at their subsidy share of 37.9%. The two combined would still leave a gap of Rs 71,780 crore.
In June 2010, the government decontrolled petrol and increased prices of diesel, kerosene and cooking gas.