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Rs 250 Hike for LPG? Kerosene to go up by Rs 4 a litre

Highlights

New Delhi: LPG Rs 250 Hike; Kerosene to go up by Rs 4 a litre, The Oil Ministry is likely to move the Cabinet Committee on Political Affairs (CCPA) soon with an expert panel recommendation of raising kerosene price by Rs 4 a litre and cooking gas (LPG) rates by Rs 250 per cylinder.

  • OilMin wants CCPA to consider recommendations of an expert panel
  • Bid to cut fuel subsidy bill by Rs 72,000 crore


New Delhi:
The Oil Ministry is likely to move the Cabinet Committee on Political Affairs (CCPA) soon with an expert panel recommendation of raising kerosene price by Rs 4 a litre and cooking gas (LPG) rates by Rs 250 per cylinder.

Sources said the ministry wants the CCPA to consider recommendations of an expert panel headed by former Planning Commission member Kirit S Parikh. The committee had in October last year recommended to the government that diesel prices should be hiked by Rs 5 per litre, kerosene by Rs 4 a litre and domestic LPG rates by Rs 250 per cylinder immediately to cut fuel subsidy bill by Rs 72,000 crore. The ministry is preparing a draft note for consideration of the CCPA on pricing of diesel, kerosene and LPG, the sources said.

Endorsing the previous UPA government's monthly 40-50 paisa per litre increase in diesel prices, the ministry is likely to propose that the monthly revisions may continue till the present Rs 3.40 a litre loss on the fuel is fully bridged. Since its decontrol in 2010, petrol rates are revised on 1st and 16th of very month based on average cost in the previous fortnight. Barring a few exceptions, petrol prices have moved in tandem with cost since then.

But as the monthly increases have led under-recoveries, or the difference between cost and retail price, falling below Rs 5, the ministry is unlikely to press for implementation of the panel's recommendation on diesel.

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