India Inc calls for dual pricing of diesel, LPGMay 24th, 2012 - 3:55 pm ICT by IANS
New Delhi, May 24 (IANS) Welcoming the hike in petrol prices, industry organisations Thursday called for differential pricing of diesel and liquefied petroleum gas (LPG) to curb ballooning fuel subsidy.
“The current under-recoveries in diesel and LPG require immediate action to ensure that dual pricing of diesel is introduced, where non-farm use of diesel should have minimum subsidy,” said Chandrajit Banerjee, director general of Confederation of Indian Industry (CII).
Banerjee said the huge subsidy on urban use of LPG should be phased out.
He said the rationalisation of petroleum prices is one of the most important reforms that industry has been advocating.
State-run oil firms Wednesday announced the biggest ever single-shot hike in petrol prices. Petrol prices have been raised by an average of about Rs.7.50 per litre.
The industry lobby said the hike in petrol prices would not resolve the issue of ballooning fuel subsidy and immediate action needs to be taken on diesel and LPG pricing.
Welcoming the hike in petrol prices, the Federation of Indian Chambers of Commerce and Industry (FICCI) said the petrol price hike would only partially cover the under-recoveries and the government needed to act on LPG, diesel and kerosene subsidies too.
The government provides subsidies of Rs.31 per litre on kerosene, Rs.13.64 per litre on diesel and Rs.479 for each 14.6 kg cylinder of LPG.
Oil marketing companies are losing over Rs.500 crore per day on sale of diesel, kerosene and domestic liquefied petroleum gas (LPG).
An empowered group of ministers (EGoM) is expected to meet Friday to take a decision on hike in prices of diesel and LPG.
- Government to decide on diesel, LPG price hike Friday - May 24, 2012
- No plan to hike diesel, LPG, kerosene prices: Reddy - May 28, 2012
- May consider reduction of diesel subsidy : Reddy - Feb 15, 2012
- No deregulation of diesel, kerosene, LPG prices - Aug 21, 2012
- Rs.64,900 crore under-recovery in 15 days for oil marketing firms - Nov 16, 2011
- Petrol price cut by Rs.2 a litre (Second Lead) - Jun 02, 2012
- Decision on fuel prices deferred, CCPA meet postponed - Sep 11, 2012
- Ministerial panel to decide diesel price hike Dec 22 - Dec 15, 2010
- Diesel, cooking gas and kerosene prices hiked (Lead) - Jun 24, 2011
- No alternative to petrol price hike: Deora - Jan 17, 2011
- Ministerial panel to decide on diesel price hike next week (Lead) - Dec 15, 2010
- Forced to hike petrol prices, say government, oil firms - Nov 04, 2011
- Oil companies to bear Rs.121,571 crore under-recoveries: Reddy - Oct 19, 2011
- Government hikes diesel price by Rs.five a litre (Second lead) - Sep 13, 2012
- Hike likely in diesel, LPG, kerosene prices - Sep 05, 2012
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