Jaipal Reddy refuses comment on fuel price hike possibility

New Delhi, Apr 3 (ANI): Union Petroleum and Natural Gas Minister S. Jaipal Reddy has refused to comment on the possibility of a fuel price hike before the government takes a final decision.

"You know about all these facts. I have no comment to make unless we take a decision," Reddy told media after meeting Indian Oil Corporation (IOC) chairman and managing director R.S. Butola.

IOC has been asking for a price hike in order while claiming that the situation in the Indian oil market is critical.

It says that the oil companies are losing Rs. 7.67 per litre for the sale of petrol throughout the country.

"I do not know if the proposal is pending with the Ministry of Petroleum or other appropriate authorities. The company has requested the government for either compensation of hundred percent under recoveries for petrol to the company, or reduction in the appropriate statutory duties. If that is done then there is no need to increase the price; if it is not then we need to increase the price," said. Butola.

Petrol prices in India are market-linked, but diesel, cooking gas and kerosene rates are set by the federal government, which partly compensates state oil firms for their losses when global crude oil prices increase.

Raising fuel prices is politically sensitive in India, with the government struggling to balance, maintaining growth momentum and reining in inflation, among the highest of major Asian economies. (ANI)