Diesel, LPG price hike soon: Moily
“A decision will be taken as quickly as possible. Recommendations of the Kelkar committee are under serious consideration. The Cabinet will take a decision shortly,” Moily told mediapersons at a press conference.
The Kelkar Committee, which was appointed by the finance ministry to suggest a roadmap for fiscal consolidation, proposed immediate hike in fuel prices and complete deregulation of diesel prices by start of 2014-15 fiscal. It also proposed a R3-4.50 per litre hike in diesel price and R130 increase per domestic cooking gas in LPG rates, along with raising the number of subsidised cooking gas cylinders for households to nine a year from the current cap of six.
The petroleum ministry has moved a Cabinet note for consideration, proposing various options to reduce the high level of under-recoveries of oil marketing companies and contain the fiscal deficit by reducing government subsidies.
On diesel, the ministry proposed a R3-4.50 per litre hike in one go or in monthly instalments of R1 or R1.50 per litre. From April, it wanted a R1/litre increase every month till such time that the current loss on account of selling diesel below market price of R10.16/litre is wiped out.
The ministry proposes to increase subsidised domestic cylinders immediately by R65/cylinder and the balance by another R65/cylinder before March 31, 2013. Further, it proposed to increase R50/cylinder till the under-recovery
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