CNBC-TV18 reports on the statement issued by RPN Singh, the minister of state for petroleum, regarding the hike in fuel prices. "The prices of diesel or LPG will not go up in the near future. So, the government will continue to pay a subsidy of Rs 17 per litre on diesel and a subsidy of Rs 321 on LPG cylinders. The government will formulate a solution to control the spiraling cost of subsidy," Singh said.
The finance ministry has re-iterated that it will be extremely difficult to support OMCs due to their under-recoveries. However, sources indicate that the government is working on solutions other than hiking fuel-prices.
"The subsidy on LPG is very high. Every person who uses a cylinder gets a subsidy. We are trying to maintain the subsidy for the poor and lower middle-classes. We have also come with a proposal that the subsidy would be applicable only on the issue of four-to-six cylinders and any issue of cylinders above this limit would not get the benefit of the subsidy."
"There is another proposal that people who can afford to buy cylinders at full prices should voluntarily be allowed to buy non-subsidised cylinders. So, the subsidy which actually provides benefits to the poor should continue," he told CNBC-TV18.
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