One-time diesel price hike not under consideration: Moily

Veerappa Moily, Minister, Petroleum & Natural Gas told CNBC-TV18 that the oil ministry is unlikely to take a one-time diesel price hike going forward based on the Kirit Parikh Committee recommendations. According to the committee, diesel prices should be hiked by a steep Rs 5 per litre, cooking gas (LPG) rates by Rs 250 per cylinder and kerosene by Rs 4 a litre immediately to cut fuel subsidy bill by Rs 72,000 crore.

Also Read: Experts not hopeful of implementation of Parikh recos

Meanwhile, Moily also spoke about his austerity drive to save fuel by taking metro every Wednesday. He added that his plan to save Rs 16,000 crore annually with his conservation campaign is on track as members of his ministry are also avoiding government transport to save fuel and money.

Below is the verbatim transcript of Veerappa Moily’s interview on CNBC-TV18 Q: Have you been taking Metro every Wednesday like you promised?
A: Yes, I have been taking Metro every Wednesday. Last Wednesday, I had to go to the cabinet meeting at the residence of Prime Minister, but I had to go by bus till his house and then walk down to my house from there. Q: Did you take a lift back? How did you get back home?
A: I came back walking. Q: Your plan to save Rs 16,000 crore annually with this conservation campaign, are you on track for that?
A: Absolutely on track. Things are going on very well to my satisfaction. Everybody, particularly in my ministry, people are totally committed. Just like me going by bus, they also adopted the same thing, as a result, every week we are saving Rs 2 crore flat. Also, many driving instructors have been trained by each of the state transport organisations and it is going on very well. With that the drivers will make a big lot to conserve the energy and that training is also on. The transport sector has been doing very well.
Bureau of Energy Efficiency have been forming ambitious benchmark programs on fuel efficiency. They are working on that and will shortly come out with definite program as well. Another matter which I would like to say is the unique initiative of the transport sector called eco-driving which is being done successfully. Even today there is a training going on with the Japanese collaboration at Bangalore.
I should have participated in that, but I could not go. The drivers are also been trained to do that. Through media campaign, Petroleum Conservation Research Association (PCRA) has been releasing print advertisement, television advertisement; that is also picking up very well. Our overall objective is to conserve about 3 percent of fuel which is quite doable and we are doing it any other matter. There is one measure by which branded fuel, but which alone can conserve about 2 percent of the fuel. Q: How is that possible, because branded fuel is more expensive?
A: Not only more expensive, it conserves energy. As a result, people will go in for that. That will make each driver economise everything. In 2009, in the new Budget new duties were imposed on the branded fuel. Then again in September 2012 the subsidy which was available to the branched fuel was also withdrawn.