Coal India (CIL) is gearing up for a price hike to offset the impact of rising input costs, including that of diesel, and to achieve its long-term objective of aligning prices to international levels.
Following the Prime Minister’s recent comment on a phased rationalisation of fuel prices, an exercise is underway to study how much hike is desirable, sources in Coal India told DNA.
The Coal India management remains tightlipped on the price hike.
But chairman-cum-managing director Narsing Rao seemed to drop a hint even as he clarified that no such proposal was considered at the board meeting on Wednesday.
“With the rise in diesel prices, our cost has gone up. But I can’t comment anything on the issue (price hike),” he said.
According to Coal India officials, the hike in diesel price in September had pushed up the company’s cost by around Rs550 crore.
Speaking at an event in New Delhi, coal minister Sriprakash Jaiswal also hinted at a revision and rationalisation of coal prices, though he ruled out any immediate hike in prices.