In order to avoid this, the Government has decided to take steady steps in order to align the prices by increasing the cost by 50 paise per litre per month. In the absence of the deregulation, the oil marketing companies report an under recovery.
Fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) lost Rs 60,907 crore on sale of diesel, LPG and kerosene in the first half of current fiscal.
The total under-recoveries on diesel and cooking fuel in full fiscal could be around Rs 143,800 crore.
On the economic growth scenario, Moily said the fundamentals of the economy are still strong and the country will not face any crisis on the growth front. “Even in the face of euro zone crisis and global meltdown, we have demonstrated our national will that our fundamentals are strong and when the fundamentals are strong, I don't think we will face any crisis,” he said.
