New Delhi: The petrol price hike is on hold for now, at least till the Budget. In an election year, possibly the UPA is not willing to take any risks with its allies, including the Left, insisting that prices should not be raised.
At the Left-UPA dinner meeting on Thursday, Prime Minister, Sonia Gandhi and the Union Finance Minister were told that it was essential to have a populist Budget.
Petroluem Minister Murali Deora has been under pressure to increase oil prices keeping in mind spiralling global oil prices. The oil companies are losing Rs 150 crore daily. But then good economics often never make good politics.
Murli Deora, who was talking of an imminent fuel price hike, on Friday declined to set an exact timeframe for the same.
Speaking to media in Bangalore, Deora said the Left parties had given their views on the issue and had not fixed any timeframe for the UPA Government to decide about it.
However, the government will ensure that the people will be put to minimum inconvenience in the event of a price hike, he said.
Giving details about the fuel position worldover, he said as against a demand of 130 million tonnes, India imported 102 million tonnes and efforts were on to reduce the amount being spent on import of crude oil.
India has entered into joint ventures in seven countries for oil production, he revealed.
To a question, Deora said the government incurred a loss of Rs 72,000 crore annually towards subsidy for fuels like LPG and kerosene. Nowhere in the world kerosene was sold at a price it is sold in India, he said.
(With agency inputs)
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