Press Esc to close
Sunday 25 June 2017
News updated at 12:37 PM IST

OilMin for up to Rs 4.50/L hike in diesel rate;Rs 100 for LPG

New Delhi, Jan 9, 2013, (PTI) : 19:17 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 instalments 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 subsidised cylinders would lower savings to Rs 2,500 crore per annum, compared to the savings of Rs 12,000 crore estimated when six cylinders are issued at subsidised rates and the rest sold at market price.

In September, the government limited the supply of subsidised LPG cylinders to six per household in a year, leading to protests from both within the ruling alliance and outside.

Sources said the ministry's note to Cabinet is based on recommendation of the Vijay Kelkar Committee, which was appointed by the Finance Ministry to suggest a roadmap for fiscal consolidation.

The panel had recommended an immediate hike in price of diesel by Rs 4 per litre, of kerosene by Rs 2 a litre and of LPG by Rs 50 per cylinder.

Price of diesel, which currently costs Rs 47.15 per litre in Delhi, was last revised on September 14 when it was hiked by a steep Rs 5.63 per litre. Kerosene rates have not changed since June 2011 and it currently costs Rs 14.79 per litre in Delhi.

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.

State-owned oil companies currently sell diesel at a loss of Rs 10.16 per litre, kerosene at Rs 32.17 a litre and LPG at Rs 490.50 per 14.2-kg cylinder.

Oil Minister M Veerappa Moily had last week stated that the government was considering raising the cap on supply of subsidised cooking gas (LPG) cylinders and Kelkar committee recommendations were being "processed" to be put up before the Cabinet at an appropriate time.

Go to Top

Photo Gallery
India's Prime Minister Narendra Modi, left and Portuguese Prime Minister Antonio Costa speak...

India's Prime Minister Narendra Modi, left and Portuguese Prime Minister Antonio Costa speak...

Shiv Sena workers protest against and torch the photos of separatist leader Mirwaiz Umar Farooq...

Shiv Sena workers protest against and torch the photos of separatist leader Mirwaiz Umar Farooq...

Police escort escaped prisoner Sayed Mohammed Said from India folowing his capture and return...

Police escort escaped prisoner Sayed Mohammed Said from India folowing his capture and return...

People revel in, and birds flock fly about the high tide at the Marine drive, in Mumbai on...

People revel in, and birds flock fly about the high tide at the Marine drive, in Mumbai on...

Hindu devotees give money to a decorated elephant outside the Jagannath temple on the eve of the...

Hindu devotees give money to a decorated elephant outside the Jagannath temple on the eve of the...

Demonstrators walk behind a police officer during an anti-fascist march, in central, London...

Demonstrators walk behind a police officer during an anti-fascist march, in central, London...

A burning stunt man can be seen during a press viewing of the Stoertebeker Festival on the...

A burning stunt man can be seen during a press viewing of the Stoertebeker Festival on the...

A Dassault Rafale fighter takes part to a flying display during the 52nd Paris Air Show at...

A Dassault Rafale fighter takes part to a flying display during the 52nd Paris Air Show at...

Jools Holland performs on the Pyramid Stage at Worthy Farm in Somerset during the Glastonbury...

Jools Holland performs on the Pyramid Stage at Worthy Farm in Somerset during the Glastonbury...

People move around themselves fire's torch during the San Juan night in the small Pyrenees...

People move around themselves fire's torch during the San Juan night in the small Pyrenees...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.