Prime Minister Manmohan Singh on Monday said that there was an immediate need for the government to raise the prices of the diesel, kerosene and LPG cooking gas which were selling for prices lower than the international prices throwing the government into debts. This meant that there would be a hike in the diesel prices soon by about Rs 2 or 3. LPG would be increased by Rs  50 or 75 as stipulated by the Kelkar Committee.

"Energy remains under priced in our country, with coal, petroleum products and natural gas prices well below international prices. To meet our target of rapid, inclusive and sustainable growth we must undertake a phased rationalisation (rpt) rationalisation of energy prices to bring them in line with world prices," he told on Monday.

He laid the foundation stone for BPCL-Kochi Rifinery's Integrated Refinery Expansion project at nearby Ambalamugal which costs around Rs 20,000 cr. He added that rapid growth can be achieved only when there was an adequate supply at affordable rates.

The PM identified that there was a dire need to acquire offshore sources and find the local oil and gas sources in the nation which might need large-scale investment.

Although the plans might be a distant dream, currently that is the only solution to cheaper fuel that the government can apply.

(AW- Anil)