When household bills for Liquefied Petroleum Gas (LPG) jump over 60 per cent for those using 12 refills a year, the increase in the price of cooking fuel will beat that of petrol.
Diesel price hike is a tough decision and we need lot of tough decisions to get to 8 per cent growth rate," Planning Commission Deputy Chairman Montek Singh told reporters.
Although the future of Direct Benefits Transfer (DBT) on liquefied petroleum gas (LPG) is uncertain for now, the upcoming vote-on-account is likely to account for about Rs 1,300 crore that was transferred to the bank accounts of customers in the form of subsidy.
Relief seen from easing global crude oil prices, phased diesel decontrol and capping of LPG cylinders.
An Empowered Group of Ministers, headed by Finance Minister Pranab Mukherjee, is likely to meet on May 21 to decide on freeing petrol and diesel prices from government control.
Even as India is mulling legislation to make energy-efficient air conditioners and refrigerators, consumer durable manufacturers are already thinking beyond that.
India may have to lean more on West Asian nations for supplies of liquefied petroleum gas (LPG), a cooking fuel, in the coming years after Indian state-run refiners drew up big plans to diversify into producing more profitable petrochemicals. This shift leads to reduced LPG output, Indian refining executives said. The mantra for state-run oil companies, from Indian Oil Corporation (IndianOil) to liquefied natural gas (LNG) importer Petronet LNG, which are looking to diversify their businesses from lower-margin fuels, has been value-added petrochemicals.
With assembly polls in four crucial states in mind, the government has decided not to increase prices of cooking gas and kerosene for a year.
The government has asked the rich to give up subsidies on LPG to make them available to people who deserve it.
Hindustan Petroleum Corporation Ltd is to set up three liquefied petroleum gas bottling plants with an investment of Rs 55 crore (Rs 550 million) even as it plans to introduce the 5-kg LPG cylinders in the urban areas.
Economists said the full cascading impact of the sharp raise in diesel, LPG and kerosene prices announced on May 24, would be visible from July onwards when inflation could touch the double digit mark.
The government on Wednesday rolled back its decision to hike LPG price by Rs 5 every month.
If elections are indeed around the corner, the government is unlikely to allow even a moderate hike in petrol and diesel prices.
Gandhi in a tweet wrote, "Mehngi gas, mehnga ration, band karo khokhla bhashan, daam bandho, kaam do, varna khali karo singhasan."
The state-owned oil retailing firms are seeking a Rs 40 per cylinder raise in the domestic cooking gas prices and a Rs 2 per litre hike in kerosene prices to offset the drastic cut in the subsidy provided by the government.
According to police, LPG cylinders exploded at 0325 IST on the ground floor of a building having a diamond unit.
Bajaj Auto Ltd is close to introducing two-wheelers that will use green fuels such as compressed natural gas or liquefied petroleum gas.
The issue of price rise is a worry for every government -- it is a political volcano. But the United Progressive Alliance on Friday steeply hiked the fuel price. Will people react? Or do they remain silent and suffer? Abhishek Mande talks to experts to 'read' the pulse.
State-owned Oil and Natural Gas Corp (ONGC) will add about Rs 8,000 crore (Rs 80 billion) to its profits annually from near doubling of natural gas prices from next fiscal.
Economic growth not only changed the food consumption pattern in rural households but has also encouraged rural India to go for more efficient energy sources like liquefied petroleum gas.
Expecting oil prices to remain under pressure, Fitch Ratings said deregulation of diesel prices in October will help in lowering the under-recoveries (which is nothing but international petroleum prices minus the subsidised retail rates).
LPG demand this fiscal is expected to be around 11 million tonne, against around 10.2 million tonne last year. It is the subsidised price of LPG, which is available at around Rs 21 per kg for domestic use. LPG for industries, which is outside price control, is sold at around Rs 58 per kg, up from around Rs 36 per kg last year.
State-run Indian Oil Corporation on Wednesday it was incurring a loss of Rs 50 crore (Rs 500 million) per day on sale of all fuel products but petrol.
The rates are hikes by almost 8 per cent.
Govt expects to save Rs 10,000 crore through this move.
After the increase, cost of a subsidised 14.2-kg cylinder will be Rs 417 a cylinder from Rs 414 in Delhi.
India, the biggest contributor to world demand for oil, will bring into effect in an overhaul of its drilling policy. This comes after more than a year of preparation and will boost the exploration and development of India's oil and gas sector along with increased participation by foreign drillers
'Geopolitically and diplomatically it's a very difficult situation for India.'
