Diesel price hike of Rs 4.50/L, LPG cylinder by Rs 100, demands Oil Ministry

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PTI: New Delhi, Jan 09 2013, 22:13 IST

The Oil Ministry has proposed a Rs 3-4.50 per litre hike in diesel price and Rs 100 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 Ministry has moved a note for consideration of the Cabinet proposing options for meeting a record Rs 160,000 crore deficit arising from selling auto and cooking fuels below their cost.

Sources said that since the Finance Ministry has refused to bear additional subsidy arising from raising cap on supply of subsidised LPG, the ministry has proposed to make up for the shortfall by raising prices.

It has proposed to raise LPG rates by Rs 100 per 14.2-kg cylinder in two installments to make up for a fifth of the Rs 490.50 per bottle loss being incurred currently.

The ministry has proposed quarterly increases of Rs 50 per cylinder from April till the entire losses are wiped-off.

On diesel, it has proposed a 3-4.50 per litre hike in one go or in monthly instalments of Re 1 or Rs 1.50 per litre.

From April, it wanted Re 1 a litre increase every month till such time that the current loss of Rs 10.16 is wiped out.

Sources said the ministry has also proposed raising kerosene price by 35 paise a litre per month or Re 1 a litre per quarter till March 2015.

The ministry's proposal, however, is unlikely to come up at tomorrow's Cabinet meeting, they said.

According to ministry estimates, raising the cap to nine

... contd.

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K.T.ACHARYULU.VIZAG | 10-Jan-2013Reply | Forward

NOW AND THEN OIL COMPANIES ARE RAISING THE PRICES OF THEIR PRODUCTS WITH THE APPROVAL OF MINISTRY.WHY LIKE THIS? LET ALL HIKES ARE AT A TIME DURING SUBMISSION OF ANNUAL BUDGET AT THE STARTING OF THE FINANCIAL YEAR.OIL PRICES ARE SUBJECT TO INCREASE ONLY, BUT GRANTING SUBSIDY IS AT THE DISCRETION OF GOVERNMENT. TO KEEP THE BALANCE OF THE FINANCIAL ELASTICITY IN THE COUNTRY IS THE RESPONSIBILITY OF THE FINANCE MINISTER UNDER THE GUIDANCE OF PRIME MINISTER.GOVERNMENT IS ENCOURAGING THE INDUSTRIES OF TWO WHEELERS AND FOUR WHEELERS, BANKERS ARE FINANCING FOR PURCHASE OF THESE VEHICLES. DUE TO NO CONTROL OVER VEHICLES ON ROADS CONSUMPTION OF FUEL BEEN RAPIDLY INCREASED.SUPPLY OF FUEL AND KEEPING THE RATE REACHABLE TO THE PUBLIC IS A QUESTION IN THE COUNTRY. RATIONING OF FUEL IS TO BE IMPOSED FOR CONTROL OF PRICES IN THE COUNTRY.AWARENESS TO THE PUBLIC FOR UTILIZATION OF PUBLIC TRANSPORT IS TO BE GIVEN.NOW PARKING PLACE FOR THE VEHICLES IS A BIG PROBLEM FACING BY ALL THE STATES AND IMPORTANT MUNICIPALITIES TO OVERCOME THIS PROBLEM MULTI STORIED PARKING COMPLEXES ARE TO BE PROVIDED IN PUBLIC PLACES.

MASTER STROKE OF PM AND FM A KING IDEA TO RAISE THE DIESEL PRICE AT 5PM TODAY

Nitin N Varia | 10-Jan-2013Reply | Forward

AT LAST THE DIESEL PRICING REFORM ACTIVATED AND ANNOUNCEMENT AT 5 PM ON A KING IDEA A MASTER STROCK THAT LINGK%u2019S INDIAS%u2019S FUEL PRICING TO WORLD PRICING Amid the mist of resistance from all corners of the political spectrum the PM and FM have finally decided to act as per their conscience and not appeasement by mounting under recoveries. The toughest of reform now activate and formally to be announced the whole country shall be explained the rational behind this hard decision= its long term benefit in containing fiscal deficit to a healthy level so that rating down grade does not get triggered and rupee do not tumbles to 63 to a dollar. There are innumerable benefits of not BRIBING by under recovery as it is a slow .poison and more injurious to all. All political parties to support this radical move that will bring fast development to the country. The PM and FM deserve best applause after a long time the two captains of the country have decided to bite the bullets and walk the talk. This is decision based on WISDOM and what the previous FM was doing was decision based on KNOWLEDGE and need of the hour is to establish faith and credibility of congress and bring transparency and stop BRIBING hence WISDOM shall prevail over KNOWLEDGE. THE PM AND FM HAVE DECIDED THEY WILL CRY ONCE TODAY BY RAISING FUEL PRICES BY TS. 4 PER LITRE AND LPG BY RS. 75 PER CYLINDER AND TILL THE ELCTIONS ARE CALLED THEY WILL BE LAUGHING AS THEY WILL BE REDUCING THESE PRICES AS FROM MARCH THE CRUDE PRICES TO TUMBLE TO 60 DUE TO GLUT IN OIL SANDS AND 20% OF CRUDE OIL IMPORT IN USA.