MIL, Feb 15, 2008. Author: moneycontrol/IR Summary
New Delhi, India: February 15, 2008 –IR Summary - Murli Deora, the Minister for Petroleum and Natural Gas has announced that the prices for Petrol and Diesel have been hiked by Rs 2.00 and Re. 1.00 respectively from today. All vehicle owners shall have to pay more from today, this was made effective from 12 P.M.last night.
Prime Minister Manmohan Singh confirmed that the prices have been hiked marginally since it was necessary to do so. "We need to look at the country's interest. The fiscal system will collapse if not made sensitive to rising international Error! Hyperlink reference not valid. India has no other option but to consider the additional burden on the import front."
Meanwhile, the Oil Secretary, MS Srinivasan has said that annualized benefit for Oil companies stands at Rs. 6,500 crore. The share of oils Error! Hyperlink reference not valid. in under recovery will go up to 57%, he added. The Government is likely to increase the share of oil bonds to 52% of under recoveries, CNBC-TV18 reports.
The Petroleum Minister had actually proposed more hike at about Rs 4/litre for petrol and Rs 2/litre for diesel. Since that’s not happened, the quantum of the hike is just Rs 2/litre for petrol and Re 1/litre for diesel.
The government, in fact, had to increase the price of oil bonds in undercover for the industry; which’ll take it to Rs 71,000 crore till the end of the fiscal.
