Govt likely to hike kerosene prices by 25 paise a month

Government is mulling over a plan to issue a nod to hike kerosene prices by 0.25 paise a litre per month till April 2017

Zee Media Bureau

New Delhi: What may be seen as a way to cut down on fuel subsidy, government is likely to issue a nod to hike kerosene prices by 0.25 paise a litre per month till April 2017, according to a report in Economic Times on Wednesday.

If the move sees the light of the day, the upstream oil companies such as ONGC may get benefited immensely. The newspaper reports that  though the move has not been announced publicly, oil companies have received the green signal to increase kerosene price by 25 paise every month till April 2017. 

The under-recovery on kerosene stands at about Rs 13.10 per litre, of which the government subsidises Rs 12.

The hike in prices will reduce the subsidy burden on domestic oil companies.