Diesel price hike coming soon as govt clears deregulation, raises LPG cylinder quota to 9 from 6

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PTI: New Delhi, Jan 17 2013, 13:27 IST

In a mix of populist and reform measures, government today raised the quota on supply of subsidised cooking gas (LPG) to nine cylinders per household from six and virtually deregulated diesel prices allowing "small" hikes over a period of time.

Diesel prices in all probability may be hiked by Rs 1.50-2.0 per litre in the first instance that can be as early as tonight following the decision taken by the Cabinet Committee on Political Affairs (CCPA) headed by Prime Minister Manmohan Singh.

Watch video Govt raises LPG cap to 9, allows oil firms to revise diesel prices

The CCPA however left LPG and kerosene prices unchanged.

"The CCPA considered the issue of raising the cap from six to nine and the CCPA has agreed and raised the cap from six cylinders (per household in a year) to nine," Oil Minister M Veerappa Moily told reporters here.

"As far as diesel is concerned, oil marketing companies have been authorised to make price correction from time to time," he said. "It (price correction) can commence even from today."

However, Finance Minister P Chidambaram maintained that the oil companies have been allowed to make "small correction ... I am looking at same subsidy bill as was expected earlier".

Administered diesel price has always been a sensitive issue with the fuel being consumed in large measure by public transport and freight carriers. It is always feared that any hike in its rates can lead to a cascading effect on prices.

Price of diesel was last revised on

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Reader's Comments (4)| Post a Comment

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H.Paul | 17-Jan-2013Reply | Forward

No benefit to our economy when we have so much of corruption in our country. Raising prices of diesel and other commodities might bring some temporary relief but all these benefits must be for the country and for masses. But rampant corruption is eating away everything and we are back to square one.

Is there any optimum balance betweeen Quantititave and Qualitative Analysis ensured, during the policy making in our Country??

Gaurav | 17-Jan-2013Reply | Forward

It is but natural; in fact it is essential for the Managers and the Economists to know their figures of the concerned indices, which influence the POLICY & DECISION MAKING PROCESS & FUTURE PREDICTION OF THE MARKETS. But, is there any real-time MARKET SURVEY done on the basis of likes & dislikes, and subjective responses of the population. I, personally think that either our eminent professionals are only concerned for their pay-checks or they are also paralysed by some MARKET FORCES through a DIVINE INTERVENTION. We import CRUDE OIL which in turn is converted to various PETROLEUM PRODUCTS for satisfying our daily needs. So, again the eternal struggle of HAVES & HAVE-NOTS come into the picture and asks us a question of who is going to sacrifice for the welfare of the NATION as a whole. Well, I know the harsh answer and hence I would like to leave this forum and allow the MARKET FORCES to take on from here. THANK YOU

Roadmap to ensure complete paralysis of the Indian population to silence Jingoism and awakened souls

Gaurav | 17-Jan-2013Reply | Forward

Well, if there is a loss of 1,60,000 crores then it should be immediately compensated by extracting the lost money from all the scams and re-calling all the black money stashed in the Swiss and other rogue International and National? Banks. This is the right time to twist the neck of this shameless Govt. when they are preparing the ground for hiking the price in pretext of introducing fear in the minds of people about an APOCALYPSO in the fiscal situation of our country. 'Kayamat ko hum salonse hamari kandho par leke jee rahe hain, ai kambakth sarkar...arre kahe ki sarkar yeh to napunsakon ki fauj hai!!!' If you have got the guts then prosecute all those scamsters in your Govt. and those who are sitting in the opposition. Now Mr.Tiwari (oops sorry he is the real BIMARI) will pop up and tell the risen masses to remain away from JINGOISM. Simultaneously, there would be a fumigation and injection campaign of promotion of silence and tolerance beyond the limits of human endurance.