More on Ummid: International l National Regional l Politics Business Religion l History l Culture l Education

 

 

UN Excellency award for King Saud University

When a glass of juice turned frosty Indo-Pak standoff into .....

Indo-Pak Ties: India looking in positive, constructive manner

Role of Tamil ethos in Indian identity and progress hailed

Turkey, 12 others denounce Israeli attack Gaza aid ships

Dr A P J Abdul Kalam: Vision 2020 still achievable

IG-level IPS officer under scanner for terror links

HC set aside Best of 5 system, terms it discriminating

 

A need for more "Inspired by Muhammad" campaigns: The "Inspired by Muhammad" campaign was  ..... Read Full

Prophet Mohammad (PBUH): The Man who devised a Secure World

Govt. Scholarships: SIO questions government's approach: Mumbai Division of the Students Islamic Organisation of India (SIO) organized ..... Read Full

Hundreds appear for IRF scholarship exams despite soaring temperature

   

The Print Media and Minority Images: It is a general view among Muslims in India that the English-Language media does not project a true and positive picture of the community  ..... Read Full

Dr APJ Abdul Kalam: Vision 2020 still achievable: Former President A P J Abdul Kalam today said despite the economic slowdown worldwide, India had the  .... Read Full

Mecca Masjid blast case: CBI announces reward: The Central Bureau of Investigation on Tuesday announced a cash reward of Rs 10 lakh for providing  .... Read Full

World Classical Tamil Meet: Coimbatore wears festive look, Inaug today by Pres: President Pratibha Patil arrived here on Tuesday night by a special aircraft .... Read Full

   

 

British Ban on Zakir Naik: Mockery of Ideals: The West precisely Britain has been campaigning for its humane values over the world for centuries .... Read Full

Umar Thambi: Forgotten father of Tamil computing: His creative work has been accepted globally. But, he failed to get due recognition locally even after  .... Read Full

Hudaibiya all set to become a cultural dialogue center: Efforts are under way to establish a major center for cultural dialogue in the historic location of .... Read Full

Bhopal Gas Tragedy: 'GoM compensation insufficient': The survivors of the Bhopal Gas Tragedy in December 1984 don't have much hope from the new Rs.1,500 .... Read Full

GoM recommends Rs 1,500 cr package for Bhopal gas victims: A Rs 1,500 crore package for enhancing compensation for the kin of those who died and those debilitated ..... Read Full

Delhi HC: Majority of govt. officials are corrupt: The Delhi High Court on June 21 said most of the government departments are filled with corrupt officials who are eating away the funds meant for poor ..... Read Full

   

Fuel prices up as Govt. moves towards market determined price regime

Saturday, June 26, 2010 10:35:04 AM, Agencies

New Delhi: In a major decision to bring petroleum products in line with market rates, the government today freed petrol from all pricing controls and hiked diesel prices by Rs two a litre, Oil Secretary S Sundareshan announced after the meeting of the Empowered Group of Ministers.

 

Finance Minister Pranab Mukherjee said price control had become unbearable for his Ministry to fund.


The government would retain the right to “suitably intervene” in pricing of both fuels in case of “a high rise and volatility in international oil prices”, said a Petroleum Ministry release.

The EGoM also approved a lower-than-recommended raise in cooking gas LPG and kerosene used by low income and poor families respectively with a sweetener to continue the PDS Kerosene and Domestic LPG Subsidy Scheme and the Freight Subsidy (For Far-flung Areas) Scheme by two years until March 2014.

As a result, the price of petrol will go up by Rs 3.50 per litre, diesel by Rs 2, kerosene Rs 3 per litre and LPG Rs 35 per cylinder from midnight Friday.

“In light of budgetary constraints and the growing imperative for fiscal consolidation, and the need for allocating more funds to social sector schemes for the common man, the government has decided that pricing of petrol and diesel, both at refinery gate and at the retail level, will be market-determined,” said a government statement.

“However, in respect of diesel, the initial increase in retail price will be Rs 2 per litre at Delhi.

Further increases will be made by the OMCs in consultation with the Petroleum Ministry,” it said.

The attempt is to bring down the government’s subsidy bill on kerosene and LPG, as also relieve the state-run oil marketing companies from incurring losses for selling these and petrol and diesel below their economic pricing.

Even after these steps, the government and the OMCs are expected to bear an estimated under-recovery burden of about Rs 53,000 crore in fiscal 2010-11, down from Rs 72,000 crore estimated at the start of fiscal year in April.

The government’s fiscal deficit, now projected at 5.5 per cent of the 2010-11 budget would shrink, freeing up capital for other social sector schemes. But the hike, especially that of diesel, would trigger all-round increase in distribution costs, further stoking inflation that is currently in double digits.

While ally Trinamool Congress leader Mamata Banerjee stayed away from the EGoM meeting, DMK leader Alagiri opposed the hike. Petroleum Minister Murli Deora jostled for the increase, saying OMCs would turn sick if no decision was taken.

The Ministry statement said that market rates for petrol and diesel would allow private firms Reliance Industries and Essar Oil — who shut their outlets in 2008 after government refused to pump up retail prices — to reopen retail sales.

“Market determined pricing is expected to attract higher investments in the fuel retail sector, and by spurring market competition, encourage OMCs to reduce costs, improve efficiency and service standards,” it said.

 

 

 

 

 

 

 

 

 

 

 

 

 

  Bookmark and Share

Home | Top of the Page

  Comment on this article

Name:

E-mail Address:

Write here...

 

 

 

 

 

 

 

 
 
 

Ummid.com: Home | Contact Us | Disclaimer | Terms of Use | About Us | Feedback

Ummid Business: Advertise with us | Careers | Link Exchange

Ummid.com is part of Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and condition mentioned.