New Delhi: New Petroleum Minister Dharmendra Pradhan Sunday defended the fresh hike in diesel prices saying the fare for bulk consumption has come down.
"We don`t want to take any step which will send a negative signal to investors. Don`t see the things in isolation. Today the diesel price for bulk consumption has also decreased by Rs.1.24. We are also responsible towards welfare of the people," Pradhan told a television news channel here.
"We have reached a stage to reduce diesel price up to Rs.1.24 in bulk consumption. This has happened due to the strengthening of the rupee under Narendra Modi`s government," he added.
Diesel prices were hiked Saturday by 50 paise a litre, excluding state levies, the second such increase in rates in three weeks.
Before this increase, diesel prices had risen by a cumulative Rs.9.55 a litre in 15 instalments since January 2013.
Responding to Tamil Nadu Chief Minister J. Jayalalithaa`s demand to revise the policy for fuel pricing, a new policy will be framed with the country`s interest being uppermost, Pradhan said.
In a statement, Jayalalithaa had said the oil pricing mechanism should be changed by factoring the cost of crude - both imported and domestically explored - and its refining costs.
The new diesel price in Delhi after including taxes is Rs.57.28 per litre, while it costs Rs.65.84 a litre in Mumbai.