A revision in retail prices of subsidised domestic LPG, diesel and kerosene, may not have happened on Thursday, but it is definitely on the Government’s agenda.
There is a strong buzz that the issue could be discussed in the Congress Core Committee meeting slated for Friday, comprising Sonia Gandhi, Manmohan Singh, A.K Antony, Ahmed Patel and P. Chidambaram.
After the Cabinet and Cabinet Committee of Economic Affairs meeting here on Thursday, Finance Minister P. Chidambaram when asked of the issue of petroleum product pricing was discussed, said there was no proposal before the Cabinet.
In fact, the Petroleum and Natural Gas Ministry has been pitching for a revision once political consensus is reached.
According to a proposal sent by the Ministry, the price of subsidised domestic LPG is to be increased by almost Rs 100/cylinder. How this increase will be effected – in phases or at one go – is a call to be taken by the decision makers.
At present, there is cap of six a year on the number of subsidised domestic LPG cylinders for each household. This subsidised product in Delhi is available at Rs 410.50/cylinder. There is a proposal to increase this cap to nine.
For diesel and kerosene, the proposal is to follow the Kelkar Panel recommendation. The panel has suggested raising diesel price by Re 1 a litre every month for the next 10 months. On kerosene, the panel suggested a Rs 10/litre hike in phases over two years.
For diesel, the Petroleum Ministry has suggested Rs 1.5/litre hike a month till March 31, 2013. Another suggestion is to increase the price in such a way that the losses incurred by public sector oil retailers for selling it at controlled rates get neutralised.