- Inflation soars to 6.46% as onion prices continue India's tear-jerker streak, spike RBI rate cut hopesPetrol price down by over Rs 3 per litre, but diesel hiked by 50 paisePetrol price slashed by Rs 1.15 per litre, diesel rate hiked by 50 paise/litre'Don't bus it, walk,' says Mamata Banerjee on Facebook as she takes a dig at M Veerappa Moily
will fan inflation.
Also, diesel is used by farmers, who form a big chunk of voters, to run their tractors and water pumps to irrigate crops.
Earlier speaking at the conference, Moily said India is the fourth largest consumer of energy in the world after China, US and Russia and is expected to become the third largest by 2025.
India consumed 157.057 million tonnes of petroleum products in 2012-13.
"Our biggest challenge is the ever growing gap between the demand and supply resulting in heavy import dependence... Presently we import about 75 per cent of our requirement.
"The country cannot afford to survive with an import bill of around USD 160 billion for petroleum and natural gas alone. The main area of import is crude oil, where nearly 80 per cent of the demand will have to be met through imports by the end of the Twelfth Plan period. In case of natural gas, current import dependence is about 30 per cent," he said.