RSS   Newsletter   Contact   Advertise with us

India to cut down fuel consumption

Share on Twitter Share on LinkedIn
Staff writer ▼ | September 6, 2013
India could announce steps to curb fuel consumption on September 16, Foreign Minister Salman Khurshid said. The goal is to slow down oil import, the biggest problem for the state budget, and to help rupee to gain some momentum after reaching record low.
India cars
India carsIndia could announce steps to curb fuel consumption on September 16, Foreign Minister Salman Khurshid said. The goal is to slow down oil import, the biggest problem for the state budget, and to help rupee to gain some momentum after reaching record low.


India is the world's fourth-biggest energy and analysts are expected to announce a steep hike in diesel prices soon, as it looks to cut oil costs by nearly $20 billion. Rising global prices of crude and the rupee's slide have left India facing an oil bill potentially 50 percent higher than on May 1.

"No matter what happens, we will have to cut down on fuel consumption. You can't keep subsiding costs of fuel and not restrict the use of the fuel," Mr. Khurshid told channel CNBC TV18.

Oil Minister M. Veerappa Moily could unveil fuel-saving measures when he returns from a trip next week to Japan and South Korea. He already suggested ways to cut fuel import costs a week ago. The government subsidises diesel prices, which are now about 10 rupees a litre below estimated market rates. Petrol prices are not subsidised.


 

MORE INSIDE POST