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Government planning higher diesel price

New Delhi: The government is planning a higher dose of diesel prices to cut the fuel subsidy bill, Petroleum Secretary Vivek Rae said here on Thursday.“We are circulating the Kirit Parikh report for inter-ministerial consultation.
IANS January 09, 2014 22:06 IST
IANS
New Delhi: The government is planning a higher dose of diesel prices to cut the fuel subsidy bill, Petroleum Secretary Vivek Rae said here on Thursday.

“We are circulating the Kirit Parikh report for inter-ministerial consultation. The suggestions for higher dose of diesel price would be part of it," Rae told reporters on the sidelines of a business partners meet organised by the Confederation of Indian Industry (CII), in the run-up to Petrotech 2014.

The Kirit Parikh panel had recommended a Rs.5 hike in diesel prices, Rs.250 per LPG cylinder increase in the price of domestic cooking gas, and Rs.4 a litre in kerosene prices with immediate effect to cut the fuel subsidy bill by Rs.72,000 crore.

"Our focus for cabinet clearance would be related to subsidy-sharing,” Rae added.

He said the focus would be to ensure that upstream companies get about $65 a barrel on sale of crude oil, which is currently in the range of $40-42 a barrel.

“This would mean that we would be able to initiate more exploration activities. While we are buying crude oil at $110 a barrel, domestic companies should get at least $65 a barrel for investing in future exploration activities,” Rae said.