Indications from various sources are mixed about the possible outcome of the much awaited meeting of the empowered group of ministers (EGoM) led by finance minister, Mr Pranab Mukherjee on Monday.
While the three major oil refining companies and the ministry of oil and natural gas are certain that there could be deregulation of petrol prices immediately there is a strong view that the EGoM may not take any immediate decision on implementing the recommendations of the Kirit Parikh Committee.
Monday’s meeting will be a preliminary meeting to discuss the pros and cons of the recommendations in detail, they say. This section believes that this is not an opportune time to deregulate petrol and diesel prices, particularly when inflation is still high.
They will also have the freshly minted heroine Mamata Banerjee to contend with as she is part of the EGoM.
The Kirit Parikh Committee had recommended immediate deregulation in the price of petrol as it would not have a cascading affect on prices of commodities.
Showing posts with label petrol and diesel prices. Show all posts
Showing posts with label petrol and diesel prices. Show all posts
Monday, June 7, 2010
Friday, May 21, 2010
3G spectrum, Aircel, Idea, telecom companies
A significant hike in the prices of petrol and diesel are on the cards following the hike in the price of natural gas on Wednesday. An empowered group of ministers (eGoM) constituted by the Prime Minister, Dr Manmohan Singh, will meet on June 7 to decided on the issue of liberalising prices of auto fuel as recommended by the Kirit Parikh committee.
The petroleum ministry and the planning commission have been in favour of implementing the Kirit Parikh report. The petroleum ministry had proposed freeing the prices of petrol and diesel along with an increase in the prices of LPG and kerosene.
The oil marketing companies are currently losing over Rs 6 per litre on the sale of both the petrol and diesel. Freeing the auto fuels from the government control would mean a hike of Rs 6 per litre in both these fuels. One of the options which the eGoM could consider is that it could decontrol the price of petrol and diesel but implement it in phases.
The PSU oil marketing companies are estimated to be losing Rs 90,000-crore on account of selling fuels at less than market rates in 2010-11. These firms had lost Rs 46,000 crore last fiscal. Currently PSU oil marketing companies are losing Rs 255 crore per day on the sale of fuels at subsidised rates. They are losing Rs 254.3 on each LPG cylinder and Rs 19.7 per litre of kerosene.
The Kirit Parikh committee report had recommended freeing of petrol and diesel prices and a hike of Rs 100 in LPG and Rs 6 per litre in kerosene. The government had on Wednesday more than doubled the price of natural gas to $ 4.20 per mmBtu.
The petroleum ministry and the planning commission have been in favour of implementing the Kirit Parikh report. The petroleum ministry had proposed freeing the prices of petrol and diesel along with an increase in the prices of LPG and kerosene.
The oil marketing companies are currently losing over Rs 6 per litre on the sale of both the petrol and diesel. Freeing the auto fuels from the government control would mean a hike of Rs 6 per litre in both these fuels. One of the options which the eGoM could consider is that it could decontrol the price of petrol and diesel but implement it in phases.
The PSU oil marketing companies are estimated to be losing Rs 90,000-crore on account of selling fuels at less than market rates in 2010-11. These firms had lost Rs 46,000 crore last fiscal. Currently PSU oil marketing companies are losing Rs 255 crore per day on the sale of fuels at subsidised rates. They are losing Rs 254.3 on each LPG cylinder and Rs 19.7 per litre of kerosene.
The Kirit Parikh committee report had recommended freeing of petrol and diesel prices and a hike of Rs 100 in LPG and Rs 6 per litre in kerosene. The government had on Wednesday more than doubled the price of natural gas to $ 4.20 per mmBtu.
