Ministry may seek to retain control even after underrecovery becomes zero.
After being left unchanged for more than 10 months, diesel prices may see an increase of around Rs 2 per litre next month, providing marginal relief to the oil marketing companies (OMCs) that incur a loss of Rs 16.10 on selling every litre.
S&P Global Ratings projects India's economic growth to slow to 6.6 per cent in FY27, down from 7.7 per cent in FY26, citing energy stress and a potential sub-par monsoon.
Oil and gold had accounted for 45 per cent of India's imports bill in 2012-13.
However, the American brokerage said it continues to expect the Reserve Bank to cut policy rates by 25 bps on January 29.
S&P Global Ratings warns that Indian oil marketing companies like IOC, BPCL, and HPCL may face reduced profit margins due to rising crude oil prices and government pressure to maintain stable retail prices.
Home-grown automobile major Mahindra & Mahindra, whose sales are predominantly driven by diesel-powered utility vehicles, has said an increase of Rs 5 a litre in the price of the fuel or a differential of up to 20 per cent with petrol price will not impact vehicle sales.
The main risk to the fiscal deficit arises from subsidies, which are threatening to far exceed the provision made for them in the Budget.
Left parties on Friday opposed the hike in diesel price with the Communist Party of India-Marxist terming it a "gigantic fraud" and decided to hold protests across the country while targeting thr Trinamool Congress for its "double standard" on the issue.
The cheer of the New Year was darkened by news that India's public finances continue to be in dire straits.
Not a single retail outlet ran dry. Every household that wanted a cylinder got one. India faced neither a 1991 moment nor a 2013 one. Macroeconomic stability held. This was not an accident, and it was not luck alone. It was the work of a government that chose to act as it had during the pandemic -- deliberately and gradually, building one measure upon another rather than reaching for a single dramatic lever, explains V Anantha Nageswaran, chief economic advisor to the Government of India.
Companies are already diversifying sourcing, raising prices, and reworking operating models as the disruption drags on.
Union Finance Minister Nirmala Sitharaman has urged an increased focus on '3Fs'-fuel, fertiliser, and forex-to maintain India's economic resilience amidst the West Asia crisis, while also criticising those who spread pessimism.
Keen to prevent a downgrade of India's sovereign rating by Standard & Poor's (S&P), which could trigger an exodus of foreign investors, Prime Minister Manmohan Singh has told the Congress party there is no option but to raise diesel prices by at least Rs 5 a litre after the Presidential election. The current diesel subsidy is Rs 9.13 per litre sold.
Trinamool Congress leader Abhishek Banerjee alleges the BJP-led government may increase fuel prices after the West Bengal assembly elections, accusing them of neglecting the common man and withholding funds from the state.
'PM Modi is trying to reduce the volume of fuel consumed instead of raising prices sharply.'
In nine hikes, petrol price has gone up by Rs 5 per litre and diesel by Rs 4.87 a litre.
The last revision was done in June wherein passenger fares were revised by 4.2 per cent and freight rates by 1.4 per cent.
India has no plans to ration fuel supplies despite ongoing disruptions in global energy markets, according to a top oil ministry official. The country has maintained adequate inventories of crude products and LPG while diversifying imports to manage supply risks.
The Rajya Sabha on Monday witnessed uproar over the steep Rs 2.35 a litre hike in petrol price and 50 paisa a litre increase in cost of diesel.
The government in December obtained Parliament approval for raising the oil subsidy bill by Rs 28,500 crore (Rs 285 billion) over and above the amount earmarked in the Budget for 2012-13.
The price of petrol has been hiked by Rs 1.39 per litre and that of diesel by Rs 1.04 a litre, in sync with firming international rates.
The government has hiked diesel price by Rs 5 per litre, effective midnight tonight.
'I am now driving an electric vehicle. I have lost faith in petrol-run cars.'
At an aggressive starting price of 18.79 lakh, the Tata Sierra.ev has a real-world range of 510 to 530 km with the 75 kWh battery pack on a single charge while the smaller 63 kWh battery coughs out a real-world range of 440 to 460 km, plus lifetime battery warranty as standard. And with the intelligent Quad-Wheel Drive system pushing out 504 Nm of torque, the EV flies from 0 to 100 km/h in just 5.8 seconds, says Rajesh Karkera.
India's Central government is likely to see its fertiliser subsidy bill double to a record 3.4 trillion in FY27, up from the Budget estimate of 1.7 trillion, due to surging global fertiliser prices exacerbated by the West Asia war. This significant increase, coupled with revenue losses from excise duty cuts for oil-marketing companies, is straining the government's fiscal space, though capital expenditure plans remain unchanged.
Ministry to propose a new subsidy mechanism to cap upstream firms' share.
Close on the heels of reducing prices of premium mid-size sedan Baleno, India's largest carmaker Maruti Udyog Ltd on Friday announced a price cut of Rs 38,000 on the diesel versions of its mid-size car Esteem.
The government has withdrawn most provisions of the emergency natural gas supply regulation order imposed during the West Asia conflict after liquefied natural gas (LNG) shipments through the Strait of Hormuz resumed following a ceasefire.
Petrol price hiked by 60 paise per litre, diesel by 50 paise.
The Bharatiya Janata Party on Tuesday said it will continue to raise in both houses of Parliament the issue of diesel price hike, which is hitting the common man, but not stall proceedings.
Diesel price is likely to be cut by close to Rs 2.50 a litre, the first reduction in more than four years, after code of conduct for assembly elections is lifted.
Maharashtra govt has announced an 80 paise cut in the price of petrol and a 30 paise cut in the price of diesel.
Trinamool Congress leader Abhishek Banerjee has warned of a significant increase in cooking gas and fuel prices by the BJP-led central government following the West Bengal assembly elections. He accused the BJP of neglecting the fuel crisis and challenged them to pledge no price hikes for the next five years.
The International Energy Agency (IEA) has proposed immediate demand-side measures, including remote work, lower speed limits, and reduced air travel, to mitigate the impact of a global oil supply shock caused by Middle East disruptions.
Moily insisted that no proposal has been moved to the Cabinet for raising diesel rates beyond the 40-50 paise a litre monthly increase, which has been implemented since January.
'If the war continue for a longer period of time, it is just a matter of time before the government will pass on some of the price increases.'
Following through announcements with enforcement of measures is key, as a run through recent Indian economic history shows, points out A K Bhattacharya.
MNS president Raj Thackeray questions the fuel consumption during recent election campaigns, asking if austerity measures are only meant for the common people.
Petrol and diesel prices were on Wednesday hiked by 24-25 paise per litre, the steepest increase since July 5 Union Budget, as a fallout of turmoil in global oil markets following drone attacks on Saudi Arabian crude oil facilities.
