Bangalore: Oil Minister Murli Deora today
indicated there would be no rollback in fuel price hike and
hit out at Opposition for "misleading" people on the impact of
"What is there to roll back. The increase was
necessitated because of huge under-recoveries that the
government and oil companies are bearing," he said when asked
whether government would withdraw the hike following criticism
by Opposition and the call for a nationwide stir on July 5.
Deora accused Opposition of misleading people on the
"The BJP and Left which never agreed on other issues had
curiously ganged up against price hike," he said after a
meeting with top officials of various oil companies and
The minister, here to launch Indian Oil`s Chennai-
Bengaluru petroleum products pipeline and Rajiv Gandhi Gramin
LPG Vitarak Yojana, wanted the Opposition to explain to people
the reason for the hike instead of going ahead with the strike
"Give us a chance, see how the policy is implemented
first," he said, claiming the hike would not adversely impact
prices except for some marginal impact.
"The increase translates to less than Re 1 a day on
domestic LPG and 26-27 paisa a day on kerosene which is not a
very huge rise," he said.
The government, he said, had borne a loss of over Rs one
lakh crore for subsidising rates of diesel, LPG, Kerosene and
petrol. Even after increasing the prices, the government would
continue to bear losses.
Citing examples of neighbouring countries, he said the
prices there were much higher in comparison to India, where
kerosene prices were lowest in the world and LPG prices were
among the lowest among countries importing the product.