Prices of diesel may go up by Rs 4-5/ltre

May 28, 2012

dies

New Delhi, May 28: After a steep hike in petrol prices last week, the government is bracing itself to bite another bullet on diesel front whereas there are indications that there may be a slight cut in petrol price.

A ministers’ meeting on controlled fuel, coming anytime after May 31, may decide on a Rs 4 to Rs 5 per litre rise in diesel prices.

Official sources said the hike could be in the range of Rs 4 to Rs 5 per litre on diesel, although the demand was somewhere around Rs 12 per litre.

“The huge subsidy on diesel, LPG and Kerosene has almost thrown government’s finances in a disarray and the revision is warranted in order to check that,” the sources said on condition of anonymity.

The state-owned oil companies currently are losing Rs 512 crore per day on selling diesel, domestic LPG and kerosene. Diesel is currently sold at a loss of Rs 15.35 a litre, kerosene at Rs 32.98 per litre loss and oil firms lose Rs 479 on sale of every 14.2 kg domestic LPG cylinder.

However, there was no reason given behind why the meeting would take place only after May 31, but analysts said that the government battling a backlash from within and outside due to a steep Rs 7.50 a litre hike in petrol prices, is perhaps buying time to let frayed nerves cool before calling the Empowered Group of Ministers (EGoM), where UPA’s allies and critics of price hike, the TMC and DMK, are also represented.

The EGoM on oil headed by Pranab Mukherjee was due to meet last week. The ministers’ meeting on revision of diesel, LPG and kerosene prices has not taken place since July 2011.

Petrol price cut

Amid protests and a call for an opposition-sponsored bundh on May 31, a slight revision in petrol prices is possible before this month end, a little ahead of the next revision cycle for petroleum prices.

“We are planning to revise petrol prices as the global crude has stabilised in the past fortnight. The volatility in rupee is still posing some problem, but we will see how far it can be done,” a top source from one of the leading oil companies told Deccan Herald.

“The revision may even come before May 31,” he said without giving details of how much cut could be effected. But sources said the cut could be to the tune of Rs 2 to Rs 3.

Oil companies revise petrol prices on the 1st and 16th of every month on the basis of average international price of crude and exchange rate during the previous fortnight.

A day after the steepest ever hike to the tune of Rs 7.50 per litre in petrol prices, Indian Oil Company chairman R S Butola had said the firms will pass on the benefit to consumers in the next revision cycle as the international oil prices showed some softening trend.

But, analysts are reading the possible revision ahead of the schedule as government’s strategy to avoid any confrontation with the Opposition.

Aware of widening price difference between petrol and diesel, the finance ministry is looking at the possibility of raising excise duty on diesel cars, a demand which was overlooked in the Budget 2012-13.

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News Network
October 22,2024

Several Central Reserve Police Force (CRPF) schools across India were hit with hoax bomb threats on Tuesday, just days after an explosion occurred near a CRPF school in Delhi. The threats, sent via email late Monday night, targeted schools in Delhi and Hyderabad, according to sources.

Earlier this week, a bomb exploded outside a CRPF school in Delhi’s Rohini area, causing significant damage to nearby vehicles and property. Fortunately, no casualties or injuries were reported.

In response to the blast, Delhi Police confiscated CCTV footage from nearby markets as part of their investigation. Sources indicate that surveillance footage captured a suspect at the scene, wearing a white T-shirt, displaying suspicious behavior the night before the explosion.

Preliminary investigations revealed that the explosive device had been hidden in a polythene bag, buried in a shallow pit, and covered with garbage. The blast caused a hole in the school's boundary wall and shattered the window panes and signboards of nearby shops.

Following the incident, the Delhi Police registered a First Information Report (FIR) under Section 4 of the Prevention of Damage to Public Property Act, Section 3 of the Indian Explosives Act, and other relevant sections.

The FIR states, "A case of an explosion caused by an unknown explosive substance has been registered, and the investigation continues." It also details the damage, noting that the blast left a hole in the boundary wall and affected nearby structures.

The targeted schools serve children from CRPF and other paramilitary families, and the recent threats have heightened concerns. In response, Delhi authorities have placed the city on high alert, ramping up security measures, especially in markets, ahead of the Diwali festival. 

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News Network
October 27,2024

Samajwadi Party (SP) chief Akhilesh Yadav stated on Sunday, October 27, that his party is prepared to contest the Maharashtra Assembly elections independently if the Maha Vikas Aghadi (MVA) does not include them in the alliance. 

Yadav assured that the SP would only contest in constituencies where it has a strong organizational presence and would ensure its participation does not affect the MVA’s overall prospects.

Several I.N.D.I.A. alliance members have expressed dissatisfaction with the Congress over seat-sharing arrangements in upcoming state polls. 

Both the CPI(ML)L and the RJD voiced frustration after being offered only 3-4 seats each for the Jharkhand elections by the Congress.

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