homeeconomy NewsGradual hike in fuel prices to continue; govt gears up for higher than budgeted subsidy bill for FY23

Gradual hike in fuel prices to continue; govt gears up for higher than budgeted subsidy bill for FY23

Sources told CNBC-TV18 that the government doesn't want to "shock the economy on fuel prices" and instead look at a slow pass-through. The additional food subsidy on FY23 annualised basis is likely to be not less than Rs 1.20-1.30 lakh crore, they added.

By Sapna Das Mar 29, 2022 11:52:46 AM IST (Updated)

The gradual increase in fuel prices will continue as the government is looking at a slow pass-through of oil price shocks instead of a one-time steep hike, sources told CNBC-TV18 on Tuesday.

"Don’t want to “shock” the economy on fuel prices," said the sources, who did not want to be named.

The fuel prices were hiked for the seventh time in eight days as the oil marketing companies look to pare losses from rise in sharp oil prices amid supply concerns due to Russia-Ukraine war.