The Petroleum and Natural Gas Ministry is yet to finalise a proposal to raise fuel prices, particularly diesel.
“It is still at the proposal stage. There is a report by Vijay Kelkar – de-regulation and increase of price. Our Ministry is yet to process and finalise its view on this issue,” Oil Minister Veerappa Moily told mediapersons at an Assocham event.
The Kelkar Committee reportedly has suggested de-regulation of diesel and also hike in prices of other subsidised products such as domestic cooking gas and kerosene. The panel was appointed by the Finance Ministry to draw a roadmap for fiscal consolidation.
Earlier, a panel headed by former Planning Commission member Kirit Parikh suggested de-regulation of fuel prices. After the recommendations; petrol pricing was freed from Government control in June 2011.
Currently, diesel in Delhi costs Rs 47.15 a litre after the last revision of Rs 5.63 for every litre on September 14. Subsidised kerosene costs Rs 14.79 in the Capital and its rates have not been revised since June 2011.
The three public sector oil marketing companies – IOC, BPCL and HPCL – sell diesel at a loss of Rs 10.16 per litre and Rs 32.17 for every litre of kerosene. Subsidised domestic cooking gas is sold at a loss of Rs 490.50 for each refill.
Moily said his Ministry was processing a proposal to increasing the cap on supply of subsidised domestic cooking gas cylinders to nine per household in a year from current limit of six.
Keywords: Vijay Kelkar Committee recommendations on cutting fiscal deficit, Kelkar panel on fuel prices hike, Veerappa Moily on kelkar panel report on fuel price hike,
Comments:
please increase the gas and petrol prices by at least 150%
BRAVO FOR THE BOLDNESS IN TAKING A STAND TO RAISE DIESEL PRICES=
ALL INDIA TO CONGRATULATE THE PM AND THE FM FOR THE BOLD AND
COURAGEOUS ACTION THEY ARE ON THE ANVIL OF TAKING A DECISION FOR
PARTIAL DE CONTROL OF DIESEL.
THE MOST CONTROVERSIAL OF ALL DECISIONS AND BY TAKING THIS DECISION
THE GOVERNMENT HAVE TO FACE COLLAPSE OF THE GOVERNMENT AS MAJORITY OF
THE POLITICAL PARTIES WILL OPPOSE JUST FOR THE SAKE OF OPPOSITING TO
APPEASE COMMON MEN AND WHO ARE NOT VERY FAMILIAR THE LONG TERM
IMPLICATIONS OF INCREASING FISCAL DEFICIT AND IMMINENT DANGER OF
RATING DOWN GRADE THAT CAN DEPRICIATE RUPEE TO 63 WHICH WILL CAUSE
EVEN FURTHER MISERY.
THE PM ANDFMARE REALLY VERY BOLD IN TAKING THIS DECISION.
NO DOUBT IT IS VERY LATE BUT BETTER LATE THAN NEVER LATE AND NOT TO BE
AFRAID THE KEY TO DO GOOD FORTHE COUNTRY.
Unfortunately the Government is facing uphill task to regain lost
confidence that it requires strong will and determination lest the
war is lost for congress and curtailing fuel subsidy is one such
action. Out of compulsion of Fitch rating agency the pressure to
raise diesel by Rs. 2 per litre will be taken in next 24 hours.
Please Email the Editor