This Article is From Sep 06, 2013

India may announce steps to cut fuel use this month

India may announce steps to cut fuel use this month
New Delhi: The oil minister will come up with some plans for lowering fuel consumption on September 16, Foreign Minister Salman Khurshid said on Friday, in a bid cut the country's import bill amid a sharp fall in the rupee.

India, which is Asia's third-largest economy, could announce a steep hike in diesel prices later this month as it looks at measures to cut oil costs by nearly $20 billion after the rupee's slide has left India facing an oil bill potentially 50 per cent higher than on May 1.

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

Khurshid said increasingly people are realising the "inevitability" of moving away from government-controlled prices.

"That's beginning to happen, but has political implications," he said.
 
© Thomson Reuters 2013
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