Fuel price reforms set to be first casualty of poll-struck UPA

Jan 11 2014, 17:54 IST
Comments 0
The benefits of the pricing reforms have anyway been negated to an extent over the last one year by a weak rupee that inflated oil import costs (Reuters) The benefits of the pricing reforms have anyway been negated to an extent over the last one year by a weak rupee that inflated oil import costs (Reuters)
SummaryReforms canít help but make way for politics.

under pressure from OMCs and state governments to revert to subsidised prices to STUs. Apart from STUs, even some industries like construction and steel have shifted to retail purchases, according to a November report of the PPAC.

Between April and November 2013, India consumed about 45.26 million tonnes (mt) of diesel compared to 45.58 mt during the same period in the previous year. Sources say that all STUs have now started procuring diesel from retail outlets, with the Kerala State Road Transport Corporation (KSRTC) being the last STU to shift to retail purchases.

Earlier this year, the Kerala government had moved the high court, seeking a directive to all oil companies to supply diesel to KSRTC at subsidised rates, considering that it is a public utility. The court had upheld governmentís view and asked oil companies to continue to provide KSRTC subsidised diesel. But in September, the Supreme Court set aside the high court ruling.

Subsidy on each (subsidised) LPG cylinder is Rs 414 at present, while the market price is Rs 1,021.

Single Page Format
Ads by Google

More from Frontpage

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...