Updated on Saturday, July 04, 2009, 21:07 IST

Chennai, July 04: The government on Saturday justified the recent fuel price hike stating that it was left with no choice but to resort to increase in the prices of fuel for maintaining the financial health of the Oil Marketing Companies (OMCs).

"The financial position of the OMCs continues to be a matter of concern for us. To maintain their financial health, the government was left with no other alternative but to increase the price of petrol and diesel by Rs four and Rs two respectively," Union Petroleum Minister Murli Deora told reporters here.

He said the OMCs had recorded under-recoveries to the tune of Rs 1,03,292 crore in 2008-09.

High global crude oil prices over the last two years in particular had impacted both the national economy and the individual, he said, adding that when prices would go down, the benefit would be passed on to the common man.

At present, OMCs serve approximately 11 crore LPG customers and the Ministry's Vision 2015 envisaged increasing it to 15 crore.

The country, had in 2008-09, exported 36.9 mmt petroleum products worth Rs 1,17,458 crore which was the highest sectoral foreign exchange earner of the country, Deora said.

Bureau Report