PETROL, DIESEL PRICES SET TO RISE STEADILY
NEW DELHI: Expect petrol and diesel prices to go up steadily as the government has decided to steadily chip away at subsidies. One big dose of a fuel price hike is likely to come soon.
In what could imply frequent price hikes of petrol and diesel starting in the next financial year, finance minister P Chidmbaram is expected to unveil details of a blueprint to completely abolish subsidies on auto fuels in the Union budget 2013-14 scheduled next month. After deregulation of petrol prices, Chidambaram is on course to decontrol diesel prices as well. But, the call ultimately will have to be taken by the Congress in an election year.
In addition, the finance ministry has laid out a roadmap for a phased reduction of subsidy on kitchen fuels — LPG (cooking gas) and kerosene, details of which are also likely to be spelled out as part of the budget proposals.