Thursday, September 13, 2012

Hike in Diesel Price by Rs. 5/- per liter with LPG restriction

The government has increased the price of diesel by five rupees per litre. However, there will be no increase in prices of petrol and PDS kerosene. The Cabinet Committee on Political Affairs (CCPA) in its meeting chaired by Prime Minister Dr. Manmohan Singh has also decided to restrict the supply of subsidized LPG cylinders to each consumer to six per year.

The new prices will be effected from midnight today.The revised Retail Selling Price of Diesel in Delhi will be approximately 47 rupees per litre, however, branded Diesel will be sold at the market rate. An official release says that the subsidized cylinders will continue to be available at 399 rupees per cylinder in Delhi , the market rate of LPG cylinders at non-subsidized rates will be notified by Oil Marketing Companies, OMCs on monthly basis.

The above decisions will reduce the under-recovery of OMCs by about 20,300 crore rupees and the under-recovery for 2012-13 will be about 1,67,000 crore rupees which is more than the under-recovery of 1,38,541 crore rupees incurred by OMCs during 2011-12. 

Congress today said that the government has reluctantly taken the decision to increase the price of diesel. Talking to All India Radio, party spokesperson Rashid Alvi said that the price of diesel and other petroleum products depends upon international market which are increasing.

Railway Minister and Trinamool Congress leader Mukul Roy has expressed his unhappiness over hike in diesel price.

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