Fall in rupee hikes fuel subsidy in India

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NEW DELHI, Dec 12 (Business Standard): Weakening of rupee against the US dollar has added a mind-boggling Rs 50,000 crore to the fuel subsidy as the nation paid more for its oil imports, Oil Secretary GC Chaturvedi said Monday. "Every time the rupee depreciates by Re 1 against the US dollar, Rs 8,000 crore is added to the fuel subsidy bill... the rupee has depreciated from Rs 46 to a US dollar to roughly Rs 52 per US dollar, thereby adding Rs 50,000 crore [to the subsidy]," he said at the 10th Petro India conference here. State fuel retailers are projected to lose a record Rs 137,605 crore this fiscal on selling diesel, domestic LPG and kerosene at government controlled rates which way below the cost.