Deora says no rationale for continuing with subsidy on petrol

India’s Petroleum and Natural Gas Minister Murali Deora said there is no justification for providing subsidy on petrol sales, hinting a price hike could be in the offing. “There is a suggestion on decontrolling petrol. I also agree there is no reason why we should give subsidy on petrol,” Deora said. At current crude oil price levels, the retail price of petrol would go up by around Rs4 (US$0.09) per liter without government subsidy, the minister said. Deora said though the government was trying its “best” to avoid any increase in diesel fuel prices, any decision on pricing will only be taken after considering the recommendations of the Kirit S. Parikh committee report. (February 1, 2010)