Breaking News
Nagaland Post Logo
You are here:  Skip Navigation LinksHome » Show story
LPG prices may be hiked
Published on 18 Jan. 2011 12:45 AM IST
Print  Text Size

Within days of a hike in petrol prices –second within 30 days- by the oil companies, there are indications pointing to an imminent hike in diesel and LPG prices.
Sources told Zee News Monday that the Empowered Group of Ministers (EGoM), scheduled to meet later this week, may recommend a hike of Rs 1-1.50 in diesel prices. The EGoM could also look into the pricing of cooking gas, reported ZeeNews.
Diesel, domestic LPG and kerosene rates have not been revised since June last year. Oil marketing companies (OMCs) have repeatedly been asking the government to hike prices of the same, as they are losing Rs 7.65 per litre on diesel, Rs 19.60 a litre on kerosene and Rs 366.28 per 14.2-kg cylinder.
Diesel prices, if hiked, would have a cascading effect on the overall inflation figure which is already hovering around 8 percent. It could also lead to a further rise in food inflation, which is at 18 percent for the week ended January 1, as the transport sector will be hit hard. Last week, state-owned oil marketing companies had hiked petrol prices by upto Rs 2.54.
The oil companies have asked the government to reduce the customs or import duty on crude oil to zero from 5 percent at present.
They also want customs duty on diesel to be slashed to 2.5 percent from 7.5 percent at present, along with a reduction in the specific duty imposed on the most-consumed fuel in the country,
Looking to abolish duties: Deora

Meanwhile, Petroleum Minister Murli Deora in an interview to a television channel today said that the Centre will ask the state government to slash import and excise duties on oil and oil products. Defending the hike in petrol prices, he said the Maharatna companies are incurring huge losses due to rise in international crude oil prices and they have no option but to resort to a hike to recover losses. The average price of crude oil during 2008-09 was around USD 82 per barrel, when the duty on crude oil was reduced to 0 per cent. The average price of crude oil during 2010-11 has already crossed USD 90 per barrel and may increase further.
The EGoM had on June 25 last year freed petrol price from state control but continues to do so in case of LPG, diesel and kerosene.

Comments:(0) Login or Register to post your Comment
(Available for registered users only)
More News
  • 1
  • 2