Petrol, diesel, Kerosene, LPG price set to rise

Prices of petrol, diesel, kerosene and cooking gas (LPG cylinders) are all set to witness another hike. The price hike may take place anytime after Friday, when the monsoon session of Parliament comes to an end.

LPG cylinders will become costlier

An increase in petrol, diesel, domestic cooking gas (LPG) and kerosene prices looks “imminent” after the Finance Ministry said it has no money to provide for fuel subsidy. Though prices of petrol have seen several hikes in the past one year, but prices of Diesel, domestic LPG and PDS kerosene rates have not been changed since June 2011 even though cost of production has soared by 28 per cent. Oil ministry report suggests, that the state-owned fuel retailers are losing Rs 560 crore per day on sale of diesel and cooking fuel, and are forced to resort to short-term borrowings to meet funds needed for importing crude oil (raw material). The oil ministry sought cash subsidy for the remaining Rs 32,750 crore but the Finance Ministry has not released any. In the absence of the subsidy support, IOC reported the highest quarterly net loss by any Indian company at Rs 22,451 crore. HPCL posted Rs 9,249 crore net loss in April-June while BPCL reported a net loss of Rs 8,836 crore. At current rate, the three firms are projected to lose Rs 1,92,951 crore in revenues in the financial year ending March 31, 2012. The three firms reported a combined revenue loss of Rs 47,811 crore on fuel sales in the first quarter.
The Oil Ministry has moved a Cabinet note seeking immediate hike in diesel, cooking gas and kerosene prices and limiting supply of subsidised LPG cylinders to 4-6 per household in a year. The ministry’s proposal to the Cabinet Committee on Political Affairs (CCPA) also includes barring households with income of more than Rs 50,000 per month or Rs 6 lakh in a year from getting subsidised LPG cylinders.
The role of UPA allies TMC and its leader Mamata Banerjee is very much crucial on this issue. As the news has already been circulated in all leading newspaper, so she can hardly say that she has not been informed.

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