Narendra Modi's Washington test

Narendra Modi's Washington test

If Modi gets the world’s biggest power right, his pursuit of larger global goals...
Small banks or banks for ‘small’ people?

Small banks or banks for ‘small’ people?

Unless appropriate sub-limits are imposed on loans, there is a serious...

OMCs can hike diesel price till under-recovery hits Rs 6/l

Jan 19 2013, 01:25 IST
Comments 0
SummaryDespite Thursday’s terse government directive, public sector oil marketing companies are unlikely to be allowed to nullify their under-recoveries on the sale of diesel, the fuel that accounts for about 60% of the gross oil subsidy bill.

on a full-year basis, if this is implemented on a consistent basis. However, there is lack of clarity on the quantum and timelines of revision of diesel prices given the politically sensitive nature of the issue,” Icra wrote in a report.

It is likely that the government would let upstream oil companies ONGC, Oil India and GAIL cut their share of the subsidy burden corresponding to, if not more than, the overall decrease in the oil subsidy burden. The hike in the number of subsidised LPG cylinders from six to nine per household per year would, however, increase the under-recoveries by Rs 9,300 crore annually.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...