The Prime Minister Manmohan Singh has asked the Union Oil Minister Marpadi Veerappa Moily to save $25 billion on oil imports in the current fiscal year, so that it can help the country to narrow its current account deficit (CAD). Moily said that oil is one of the components which is responsible for CAD, so the Prime Minister has asked him to cut oil imports to save $25bn.
He said that the government would not plan to allow oil marketing companies to raise diesel prices by more than the approved 50 paise per litre a month. India’s oil import bill rose 9.2 per cent to $169.25 billion in the 2012-13 fiscal year that ended in March.
The Minister said that his department has already made attempts to save $22 billion savings, and still measures were on to save $3 billion.