With no significant let-up in retail fuel prices despite the Centre's intervention, Prime Minister Narendra Modi has called for alternative measures to curb rates in future, sources told DNA. Soaring oil prices have become a huge challenge for the Centre as oil marketing companies can't afford to repeatedly subsidise petrol and diesel.
A week after slashing excise duty on fuel, PM Modi on Friday met Finance Minister Arun Jaitley, Commerce Minister Suresh Prabhu and Oil Minister Dharmendra Pradhan and discussed ways to shift the country's energy dependence towards biofuels.
The PM reviewed the status of production of oil and gas in the country. The government wants domestic production of oil and gas to be increased as it feels curtailing oil consumption is not a resolution.
A litre of petrol cost Rs 82.48 in Delhi, while the rate for the same quantity was Rs 87.94 in Mumbai.
The high-level meeting also talked about cutting oil import by 10 per cent by 2022, said sources, requesting anonymity. "India's vulnerability is in oil imports as it meets over 82 per cent of its crude oil requirement through imports.
The high international prices are inflating the import bill. Oil imports have a negative impact on the rupee and the current account deficit (the difference between the inflow and outflow of foreign exchange). The country needs a stable regime for oil," government sources said.
During the current financial year, the country has so far imported 220 mt of crude oil. It is believed that rising oil prices also influence Rupee's movement.
Friday's meeting is also believed to have discussed impact of US sanctions on Iran and devise long-term and short-term plans to find better and cheaper alternatives for oil needs.
Announcing a reduction on October 4, Jaitley had appealed to state governments to match the Centre's cut in fuel prices so that the total price cut would be Rs 5 per litre. The move will cost the Centre Rs 10,500 crore this financial year.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Petrol")
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}