May consider reduction of diesel subsidy : ReddyFebruary 15th, 2012 - 1:15 am ICT by IANS
Gurgaon, Feb 14 (IANS) Petroleum Minister Jaipal Reddy Tuesday said his ministry may consider at an appropriate time to reduce the subsidy it incurs on selling cheaply diesel and liquefied petroleum gas (LPG) cylinders.
“Deregulation of diesel is very difficult. But at an appropriate time, the ministry (ministry of oil and natural gas) would reduce subsidy on diesel and liquefied petroleum gas (LPG),” Reddy told reporters here after an event.
Diesel is heavily subsidised by the government. The three state-owned oil marketing companies (OMCs) incurred under-recovery of Rs.12.95 on sale of each liter of diesel in the first fortnight of January, according to data provided by the ministry of petroleum and natural gas.
“We have already taken the issue of losses bearing oil companies with finance ministry. We want finance ministry to provide for losses incurred on petrol as well,” the minister said.
OMCs suffered under-recoveries of around Rs.37,719 crore on sale of diesel in the first half of the current financial year, which is more than half of the total Rs.64,900 crore of under-recovery on all the petroleum products.
Reddy added, that the OMCs will need to raise diesel price by Rs 11.35 per litre if the government was to free its pricing like it was done in case of petrol in June 2010.
Even petrol rates have not moved in tandem with cost since its deregulation and state-owned oil firms have refrained from raising rates since December.
Amid in view of crucial assembly elections in five states including Uttar Pradesh and Punjab the oil prices were not increased.
Oil firms claim that they lose Rs 3.25 per litre on the petrol currently.
- 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
- RBI wants government to deregulate diesel price - Jan 24, 2012
- India Inc calls for dual pricing of diesel, LPG - May 24, 2012
- Oil firms ask government to compensate them - Apr 17, 2012
- 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
- Oil marketers to incur loss of Rs.121,000 crore in current fiscal - Oct 10, 2011
- No plan to hike diesel, LPG, kerosene prices: Reddy - May 28, 2012
- No government role in petrol price hike: Pranab - Nov 05, 2011
- Fresh petrol price hike of Rs.1.80 per litre - Nov 03, 2011
- Government hikes diesel price by Rs.five a litre (Second lead) - Sep 13, 2012
- Diesel under-recoveries of oil companies rise 14 percent - Aug 16, 2012
- Decision on fuel prices deferred, CCPA meet postponed - Sep 11, 2012
- No cap on number of LPG cylinders to affluent - Aug 17, 2012
Tags: assembly elections, crore, deregulation, diesel price, feb 14, finance ministry, fortnight, gurgaon, jaipal reddy, liquefied petroleum gas, litre, marketing companies, natural gas, oil companies, oil firms, oil prices, omcs, petrol, petroleum products, subsidy