New Delhi: As part of the government’s austerity drive to save its foreign exchange reserves by cutting fuel expenditure, Oil Minister M Veerappa Moily on Tuesday laid out some measures which includes a plea to chief ministers of states to travel by buses once a week.
The minister also called for a “Bus Day” every week.
Mr Moily said the measures were aimed at saving $5 billion from the country’s huge fuel bill.
Mr Moily, who has said he wants to find savings of up to $25 billion on oil bills, outlined measures including public awareness campaigns which he said could help the world’s fourth-biggest energy consumer reduce fuel costs.
He said India has a “serious engagement” with sanctions-hit Iran over oil imports. Mr Moily has said he could save $8.5 billion in foreign exchange outflows by raising imports of Iranian crude, which India pays for partly in rupees.
The other measures suggested by Mr Moily include car-pooling to go to offices and schools, free cycle scheme in select cities, proper maintenance and driving of tractors and diesel pumps.
Mr Moily however, said there were no immediate plans of raising diesel prices by more than 40-50 paise per month as is the norm.
The markets are likely to react negatively to this news, as the economy is desperately in need of reforms such as a diesel price hike.
“I’m feeling that the market short-term will be under pressure unless we see some policy changes by the government, given that we haven’t had a diesel price hike is quite worrying,” Andrew Holland, CEO, Investments, Ambit Capital had told NDTV yesterday.
(With inputs from Reuters)(Courtesy: profit.ndtv)