Govt to hike fuel prices post Finance Bill okay: report

Get set for a hike in diesel prices soon. The government will raise prices of subsidized fuels such as diesel when the Finance Bill is approved by the Parliament in early May, reports said. Reports said Finance Minister Pranab Mukherjee has promised to raise prices soon to tackle a rising subsidy burden and large deficits. However, it would not be an easy task for the government which is already riddled by inflation worries and under fire for its weak fiscal deficit condition. Moreover, India imports 80% of its energy requirements and rising crude oil prices and a depreciating rupee has only added to the government’s woes. Diesel is a subsided fuel used in transport etc. and raising its prices would only add to inflationary worries. While the government has deregulated the prices of petrol whereby oil marketing companies can raise prices after an informal nod from it, the same has not been the case for diesel in order to check inflation and protect the weaker sections of society. Diesel prices were last raised in July. Also, petrol prices have not been raised since December, keeping in mind the crucial State Assembly elections that followed soon. Reports said gasoline prices could be raised around the same time as diesel.