Rs 10 per litre hike in diesel, kerosene if OilMin proposal okayed
While government is likely to raise soon the number of subsidised cooking gas (LPG) from 6 to 9 cylinder of 14.2-kg per household annually, the ministry wanted to have just two rates for the fuel -- a subsidised price and a market rate, instead of four rates presently, he said.
Subsidised LPG costs Rs 410.50 per 14.2-kg cylinder and any household requirement beyond current cap of 6 cylinders is to be bought at near market price of Rs 895.50 per bottle. For non-domestic use, a 14.2-kg LPG cylinder costs Rs 1,156 while a 19-kg cylinder for commercial use is priced at Rs 1,619.
The source said state-owned Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp together in first six months of current fiscal lost Rs 85,586 crore on selling diesel, domestic LPG and kerosene at government-controlled rates which are way below their cost. Of this, the bulk Rs 52,711 crore was on account of losses on diesel.
The government has promised a cash support of Rs 30,000 crore to cover a part of the Rs 85,586 crore revenue loss on fuel sales during April-September. Upstream oil firms like ONGC have chipped in Rs 30,170 crore, leaving a balance Rs 25,417 crore uncovered, he said.
The Oil Ministry, he said, wants Finance Ministry to make up for this shortfall as well as the revenue deficit expected in the remaining six months of current fiscal.
In all, the Oil Ministry has sought Rs
Be the first to comment.