Diesel price hike a necessity: CII

New Delhi: Industry body Confederation of India Industries (CII) on Thursday welcomed government's decision to increase diesel price.

"The decision of the government to hike diesel prices and LPG (beyond six cylinders) are borne out of necessity. CII fully understands the economic compulsions for such a decision," CII Director General Chandrajit Banerjee said in a statement.

He added that "rationalisation of fuel subsidies is a necessity from the point of fiscal consolidation and therefore, CII congratulates the government on this bold decision."

The government on Thursday hiked diesel prices by a steep Rs 5.62 per litre and restricted the supply of subsidised cooking gas to 6 cylinders per household in a year to fetch an additional Rs 20,300 crore.

The government on Thursday hiked diesel prices by a steep Rs 5.62 per litre and restricted the supply of subsidised cooking gas to 6 cylinders per household in a year to fetch an additional Rs 20,300 crore.

It, however, left kerosene rates untouched and spared an increase in petrol price by cutting excise duty by Rs 5.50 per litre.

The Cabinet Committee on Political Affairs decided that each household will get 6 cylinders of 14.2-kg per annum at the subsidised rate of Rs 399 and any requirement beyond that would have to be procured at the market rate of Rs 746 per bottle.

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