Government hints at another fuel price hike

Petroleum and Natural Gas Minister S Jaipal Reddy on Tuesday hinted at the possibility of another fuel price hike, even as Rupee depreciated for the fifth consecutive day against the US dollar.

Reddy, however, did not reveal when the price hike would take place

He said that once a decision is taken by the government, a meeting with other political parties would be convened to explain the reasons for the hike, if it should take place

Reddy claimed that oil firms are incurring huge losses, especially after rupee's depreciation against the dollar

It is estimated that oil marketing companies are in debt to the tune of Rs72,000 crore, and that for every rupee that depreciates, they lose Rs8,000 crore.

The opposition BJP reacted to the development by saying that it would prove to be disastrous for the common man.

Source: DNA India