12-cylinder carrot to lure support for fuel price hike
On kerosene, the proposal is that the price be either increased by 35 paise a litre per month or R1/litre per quarter till March 2015.The under recovery on petroleum products for the current fiscal is estimated at R1,67,000 crore.
The price of diesel — currently R47.15 per litre in Delhi — was last revised on September 14 when it witnessed a steep hike of R5.63/litre. The price of kerosene has not changed since June 2011 and stands at R14.79/litre in the national capital. Subsidised domestic cylinder costs R410.50 for every 14.2-kg cylinder and any household requirement beyond current cap of 6 cylinders is to be bought at near market price of around R900 per cylinder. State-owned oil companies currently sell diesel at a loss of R10.16 per litre, kerosene at R32.17 a litre and LPG at R490.50 per 14.2-kg cylinder.
Separately, as reported by FE, the petroleum ministry is set to ask the bulk consumers of diesel to buy it at market rates. Currently, bulk consumers — power plants based on diesel, companies with captive power units, the railways and road transport corporations — buy the fuel at subsidised rates but at slightly lower rates than the retail consumer, thanks to a waiver of dealers’ commission and discounts offered by the oil companies, which compete to get the
Be the first to comment.