India to hike prices of petrol, diesel

NEW DELHI, May 23 (UPI) -- India's Petroleum and Natural Gas Ministry said it would raise prices of gasoline and diesel fuel within three or four days.

The ministry has sought a 7-cents-per-liter increase in gasoline prices and a 3-cents-per-liter increase in diesel fuel prices, along with a cut in customs and excise duties to offset the impact of the surge in crude oil prices that have reached $135 per barrel.

Petroleum Secretary M.S. Srinivasan said the next Cabinet meeting would not consider raising fuel prices, as the subject needed some more preparation and a note would be moved to the authorities in a day or two.

"We expect a decision in three to four days time," he said. The ministry was suggesting a combination of price hike and duty cut to lower the under-realization on sales of gasoline, diesel fuel, liquefied petroleum gas and kerosene.

"The price hike is inevitable," Srinivasan said, speaking to reporters at a function in New Delhi. The petroleum secretary, however, declined to share the amount of the increase that the ministry was seeking.

Srinivasan said the ministry also sought to lower the customs duty on crude oil from 5 percent to zero and the import duty on gasoline and diesel fuel from 7.5 percent to 2.5 percent. In addition, the ministry was also seeking a cut on the excise duty on the two products.