Monday, October 6, 2008


Hyderabad, : The Chief Minister, Dr Y.S. Rajasekhar Reddy, on Wednesday expressed serious concern over the steep hike in fuel prices and requested the Centre to take steps to check it. Terming the hike as unprecedented, the Chief Minister said it would pinch the common man the most. He added the hike was imminent because of the heavy burden on oil companies because of subsidies.
DrYSrajsekhara Reddy said he would take up the issue with the Prime Minister, Dr Manmohan Singh and the finance minister, Mr P. Chidambaram, during his visit to New Delhi. Dr Reddy said shelling out another Rs 50 for cooking gas, Rs 5 on petrol and Rs 3 on diesel would hit all sections of people.
"Inflation worldwide has caused rise in prices of some of the essential commodities and now with the hike in prices of petroleum the common man will be badly hit," he remarked. The Chief Minister said though the hike in prices of petroleum products was expected because of soaring crude oil prices globally, the massive hike in the price of LPG was unexpected.
"International crude oil prices are hovering around $132 per barrel. This is out of our control. As of now, the oil companies are losing about Rs 16.34 on petrol, Rs 23.49 on diesel and Rs 28.72 on kerosene per litre and Rs 305.90 on every gas cylinder," he added. He said, "Due to this, oil companies are losing Rs 600 crore each day and would lose a staggering Rs 2.25 lakh crore this financial year."
YSR said during the BJP-led National Democratic Alliance rule, petroleum prices were hiked seven times though crude oil prices increased from $21 to $39 per barrel. After the Congress-led United Progressive Alliance came to power, international crude oil prices shot up from $40 to $132.