'Another fuel price hike likely' - Hindustan Times
close_game
close_game

'Another fuel price hike likely'

PTI | By, New Delhi
Jun 13, 2008 12:52 AM IST

India may go for another round of hike in energy prices as global crude prices continue the upward swing, according to the credit rating agency Moody's.

India may go for another round of hike in energy prices as global crude prices continue the upward swing, says credit rating agency Moody's.

HT Image
HT Image

"As global prices continue to soar, the government will likely announce further increases in energy prices and cuts in subsidies," said a report by Moody's Economy.Com, an associate of Moody's.

Hindustan Times - your fastest source for breaking news! Read now.

After much dilly-dallying, the government had earlier this month announced hike in price of petrol by Rs five a litre, Rs three for diesel and Rs 50 for a gas cylinder to help oil marketing companies partly meet their under recoveries because of surging global crude prices.

The government still gives Rs 300 subsidy for a gas cylinder.

The government had to face an all-round criticism for its move to raise petrol prices and even Prime Minister Manmohan Singh addressed the nation to explain the rationale for the increase.

Following the appeal of the Prime Minister, many states also cut sales tax on petroleum products to blunt the impact of fuel price hike.

Moody's further said authorities would continue to hand out assistance to the poor households while trying to tame inflation, given that price rise is the biggest obstacle of the incumbent government in restoring voters' trust in the lead up to the general election.

Global crude oil prices were ruling above 138 dollars a barrel on Thursday.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On