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Posted on Dec 28, 10:50AM | IBNS
Diesel and kerosene rates may be raised by Rs 10 per litre over a period of ten months and two years respectively, if a proposal by the Oil Ministry is accepted.
The price hike is under consideration as the government mulls ways to bring down a ballooning fiscal deficit, Rs 160,000 crore of which will come from subsidising diesel, cooking gas (LPG) and kerosene this fiscal.
Prices of diesel, which currently costs Rs 47.15 per litre in Delhi, was last raised on Sept 14 by Rs 5.63, while Kkrosene which costs Rs 14.79 per litre, has remained unchanged since June last year.
The news of the government proposal comes on a day when Prime Minister Manmohan Singh said that fuel rates need to be adjusted in order to bring down the deficit but added that it is not prudent to hike prices right now.