Still battling the fallout of last month's steep Rs 7.54 a litre hike in petrol price, the government on Friday said it is not considering raising rates of diesel, domestic gas (LPG) and kerosene for the moment.
Petrol, diesel, LPG and kerosene prices are unlikely to be revised immediately as the Congress-led Government, which is yet to assume office
Moody's expects the new government to increase the retail selling prices of controlled fuel products -- kerosene and liquefied petroleum gas -- to help control its subsidy burden.
Amid a spate of government proposals at its door, the Election Commission has asked all Union government departments to route their proposals through the Cabinet Secretariat.
Cheaper goods and services and stability in overall prices, as well as higher exemption in personal income tax rates is also on the wish list of the common man.
The Trinamool Congress and the Communist Party of India (M) on Thursday opposed the proposed increase in the prices of LPG and other petroleum products recommended by an expert panel headed by former Planning Commission member Kirti Parikh, saying a new burden of raised prices would hit the common people hard.
In June, the government had decontrolled petrol, causing a hike of Rs 3.5 per litre, and increased diesel prices by Rs 2 a litre, LPG by Rs 35 a cylinder and kerosene by 3 a litre -- amid protests by opposition parties.
Congress General Secretary Digvijay Singh on Sunday said in Bhopal that rising inflation is a major problem but it was necessary to hike prices of petroleum products because of the international situation.
Oil companies have welcomed the hike in petrol and diesel as it will help them cut losses on sale of fuel.
The Group of Ministers are scheduled to meet this month to decide upon the issue of petro price system.
Government will hold consultations with leaders of the left parties, allies of the ruling United Progressive Alliance, on the issue of petroleum product prices even as Petroleum minister Murli Deora disfavoured increasing LPG and kerosene prices.
The room for political manoeuvre to raise petroleum prices is the highest at this point in time, says Business Standard.
The government has allowed oil companies to raise diesel price by 50 paise a litre per month; bulk users to be charged market price.
Making a case for raising prices of diesel, kerosene and LPG, the Reserve Bank on Tuesday said hike in rates of petroleum products is necessary to arrest fiscal slippages.
Costlier petrol, diesel and LPG pushed up inflation to 7.76 per cent during the week ended November 6 amid fears that it could rise further in the coming weeks after the full effect of the second round of price hike in petro products during the perio
The empowered group of ministers on fuel pricing is to meet this week to take a view on the price of diesel.
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.
Petroleum Minister Ram Naik on Monday said the hike in petrol and diesel prices was "justified" given the hardening of global crude prices.
Petroleum Minister Murli Deora on Tuesday said petrol and diesel prices will not be increased "as of now" even as he began consultations with Finance Minister P Chidambaram on ways of mitigating the spurt in global oil prices.
'The price increases, particularly in respect of cooking gas, that is domestic LPG and PDS kerosene, have been quite minimal.'
In 2017, a consortium led by Russian state oil company Rosneft agreed to buy Essar Oil for $12.9 billion in India's biggest foreign acquisition of a homegrown company. Rosneft's buyout of Essar's assets was meant to herald a wave of energy investments in India - over six decades after Esso, Caltex and Shell invested in India's refining sector in the 1950s. But the government has tripped up in its efforts to sell Bharat Petroleum Corporation Ltd (BPCL), formerly Burmah Shell, a blue chip public sector company. Bidders include a couple of global funds and resources firm Vedanta.
Petroleum Minister Murli Deora on Monday ruled out any rollback in the increased prices of petroleum products, saying the hike has been reasonable and minimum. "The hike is reasonable and minimum ...," Deora told reporters here.
International crude oil prices crossed the $60 a barrel mark yesterday--up from a record low of $32.40 in December last year--on the back of improved sentiment over the economic recovery, especially in China and Europe.
The government-appointed Kirit Parikh committee suggested an 'immediately' hike prices of diesel by Rs 5 a litre, Rs 4 per litre in kerosene and Rs 250 per cylinder in LPG, reduce annual entitlement of subsidised cooking gas cylinder from six from nine and phase out diesel subsidy in one year to cut a record subsidy burden.
With the assembly polls in major states concluding, the government may slash petrol price next week by Rs 10 a litre, diesel by Rs 3 per litre and domestic LPG by Rs 20 per cylinder in line with fall in global oil prices.
Changes in global oil and gas rates matter more to India's economy than other major economies because the country imports around 87 per cent of its oil, half of its gas in the form of LNG, and over 60 per cent of its LPG.
State-owned fuel retailers IOC, BPCL and HPCL are likely to lose Rs 65,000 crore on selling diesel, domestic LPG and kerosene below cost during the current fiscal, Oil Minister Murli Deora said on Wednesday.
Diesel prices may be hiked by Rs 10 per litre over a 10-month period and kerosene rates increased by same quantum over the next two years if a proposal being mulled in the Oil Ministry is accepted.
The demonstration was staged at the Alka Talkies Square in Pune where the women lit the earthen stove fire using wood and kerosene and offered the tea without milk to the bystanders, even as party workers raised anti-government slogans denouncing the fuel price hike.
The oil ministry is in fact of the view that the government should bear the entire burden of the revenue losses incurred by the oil marketing companies, after the increase in prices is effected.
Glimpses from the Congress party's Halla Bol rally at the Ramlila Maidan in New Delhi on Sunday, September 4, 2022
Kharge launched a sharp attack on Prime Minister Narendra Modi, saying the Himachal Pradesh poll schedule was announced but not of Gujarat so that the PM can inaugurate many more bridges like the one that collapsed in Gujarat's Morbi.
In a clear move to protect consumers from hardening global oil prices, the government will announce by June 15 a new pricing policy for petrol, diesel and LPG that may include lower duties and targeted subsidies.
The average price of Indian basket of crude oil during 2007-08 (upto August) has increased to $68.34 per barrel as compared to 62.46 dollars a barrel during 2006-07.
Prime Minister Narendra Modi's brother Prahlad Modi, who is also the vice president of All India Fair Price Shop Dealers' Federation, on Tuesday staged a dharna here with various demands of the organisation. Prahlad along with several other members of the All India Fair Price Shop Dealers' Federation (AIFPSDF) gathered at Jantar Mantar, holding banners and raising slogans.
The Prime Minister Manmohan Singh on Tuesday said the government would adopt a multi-faceted approach on pricing in all forms of energy including auto fuel, LPG, kerosene and electricity aimed at efficient and rational use of energy resources.
Rumour-mongering has largely affected the process to calm down the situation and bring peace in troubled Manipur.
'I have no problems with the finance ministry or with state governments treating petrol pump prices as the last resort for meeting their ambitious spending targets with very limited revenue resources.' 'But let's do away with this smokescreen of free pricing of petrol and diesel and go back to administered pricing regime,' says Dr Sudhir Bisht.
The Left parties on Wednesday asked the government to reduce prices of LPG and diesel and restore 9.5 per cent interest rate on Employees Provident Fund.
