The Hindu : National : Cut excise duty to avert fuel price hike, says Deora

Online edition of India's National Newspaper
Monday, Aug 14, 2006

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National

Cut excise duty to avert fuel price hike, says Deora

Dehra dun: Petroleum Minister Murli Deora has asked Finance Minister P. Chidambaram to cut excise duty to avoid raising petrol and diesel prices that has been necessitated due to a surge in international prices.

"I have written again to Mr. Chidambaram for reducing excise duty," he said here on Sunday.

The spurt in global crude oil prices warrants a Rs. 6.31 a litre hike in petrol, Rs. 8.25 a litre increase in diesel, Rs. 18.69 a litre raise in kerosene and hike of Rs. 166 a cylinder in LPG prices.

Mr. Deora said the Government wants to pass on the least possible burden to consumers but any duty relief should not hamper the Government's programme.

"He [Mr. Chidambaram] has to see that the budget is not affected, and ensure money to all welfare programmes," Mr. Deora said, adding ministries of Petroleum and Finance were working together to resolve the crisis.

Petroleum Secretary M. S. Srinivasan said the Government has given freedom to public sector oil firms to revise petrol and diesel prices every month but they have not increased prices in line with rise in international prices.

"Oil companies may have been given permission but they think time has not yet come to for another round of hike," he said. — PTI

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