In the backdrop of rupee’s fall against dollar and the escalation of Syrian crisis ballooning oil import bill, Union Petroleum Minister Marpadi Veerappa Moily on August 29 met Finance Minister P Chidambaram to discuss possible solutions to the crisis. Sources said that the oil minister discussed with Chidambaram the diesel price hike of Rs 3-4 per litre and cut in duties.
On the threat of US strikes against Syria, the over 20 per cent rupee depreciation this year and global oil rates spiking to two-year high has meant that loss on sale of subsidised diesel and cooking fuel will rise to at least Rs 1,40,000 crore from last month’s estimate of Rs 1,23,000 crore.
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