Srinagar, Feb 06: Diesel prices in Jammu and Kashmir will see a marginal increase following the government’s decision to reduce the rebate on High-Speed Diesel (HSD) by ₹2 per litre, a move aimed at strengthening revenue generation while safeguarding social welfare spending.
Announcing the measure during the Budget presentation, Chief Minister Omar Abdullah said the government needs to explore every possible avenue to upscale revenues even as it enhances social protection for the poor. He underlined the importance of fiscal discipline through austerity and efficiency measures, along with improving the impact of public expenditure by leveraging scale, competition and private initiative.
The Chief Minister said the reduction in HSD rebate would help rationalise diesel prices and encourage a gradual shift towards cleaner technologies. He assured the House that despite the cut in rebate, diesel prices in Jammu and Kashmir would continue to remain lower than those in neighbouring states, including Punjab, Haryana, Himachal Pradesh and Delhi.
The move, the government said, strikes a balance between fiscal consolidation and environmental responsibility, while keeping fuel prices competitive in the region.
