Pranab Mukherjee rules out possibility of rollback of hike in petrol prices

MUMBAI: Finance Minister Pranab Mukherjee today ruled out the possibility of rolling back the petrol price hike announced by oil marketing companies last week.

The minister said there was no question of rolling back the petrol price hike, as the government was already burdened with the subsidy given to oil companies, with Rs 16 per litre on diesel, Rs 26 per litre on kerosene and Rs 320 for every 14 kg of LPG cylinder.

"Till today, I am giving subsidies...Therefore, there is no question (of rollback), because huge subsidies have been provided. Last year, it was close to one lakh crore of rupees, this year I do not know what will be the international price of crude," Mukherjee told reporters here.

"Everyday, the price of crude oil is increasing. The prices were adjusted last time in June 2006. At that point of time, the average price of Indian crude was USD 89 and now it is at USD 107," he added.

Last Saturday, oil companies hiked the petrol prices by Rs 5 per litre, which was less than half of the Rs 10.50 per litre hike required to cover the imported crude oil cost, which had touched a two-and-half year high of USD 110 per barrel.