Follow us on
Welcome Guest! You are here: Home » Business & Economy
Parikh Panel recommends Rs.5 a litre hike in diesel price
Wednesday October 30, 2013 5:38 PM, IANS

The Kirit Parikh Committee on fuel pricing Wednesday recommended an immediate increase in diesel price by Rs.5 a litre to offset the loss incurred by state oil marketing companies (OMCs) in selling below cost.

In its report submitted to the petroleum ministry here, the committee suggested that the balance loss should be met through a fixed subsidy of Rs.6 per litre to the OMCs.

The panel has also suggested increasing kerosene prices by Rs.4 a litre, and a cap on subsidised domestic LPG to be restricted for each household to six cylinders per year.

The panel was constituted to recommend a pricing methodology for diesel, domestic LPG and kerosene sale through the public distribution system.

In its draft report, the panel said that until diesel pricing was made market determined, the existing pricing mechanism based on trade parity should continue.

It felt that changing the existing pricing formula would not solve the problem of increasing losses, because of high international crude prices and rupee depreciation.

OMCs have been allowed by the government to increase diesel prices by 45-50 paise a litre every month.

Share this page
Note: By posting your comments here you agree to the terms and conditions of
comments powered by Disqus
| Quick links
Contact us
Subscribe to: RSS » Facebook » Twitter » Newsletter Disclaimer | Terms of Use | Advertise with us | Link Exchange is part of the 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 conditions mentioned.
© 2012 Awaz Multimedia & Publications. All rights reserved.