Govt Hikes diesel price by Rs 5, limits subsidized LPG cylinders to six
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- National News
- Thursday, 13 September 2012 19:09
- Published on Monday, 17 September 2012 11:09
- Hits: 915
Gujarat Global News Network, New Delhi
The Cabinet Committee on Political Affairs (CCPA) under the chairmanship of the Prime Minister has taken the decision to raise the price of diesel by Rs 5. It has also decided to limit the number of subsidized LPG cylinders to each consumer to 6 cylinders in a year.
The decisions taken by the CCPA are as follows:
a) Increase in price of Diesel by Rs. 5 per litre excluding VAT. Out of this, Rs. 1.50 per litre is on account of increase in Excise Duty. The balance increase of Rs. 3.50 per litre will reduce the under-recovery of OMCs by about Rs. 15,000 crore for the remaining part of the current financial year.
b) No increase in the price of Petrol, although the current under-recovery on Petrol is about Rs 6 per litre. The consequent loss to the OMCs will be offset through reduction in Excise Duty on Petrol by Rs 5.30 per litre.Â
c) Restrict the supply of subsidized LPG cylinders to each consumer to6cylinders (of 14.2 Kg) per annum. This will help in reducing the under-recovery by about Rs. 5,300 crore for the remaining part of the financial year. Any number of cylinders will be available over and above the cap of 6 cylinders at market rate. The number of subsidized LPG cylinders available to each consumer in the remaining part of the current financial year will be 3 cylinders. While subsidized cylinders will continue to be available at Rs. 399 per cylinder (at Delhi), the market rate of LPG cylinders at non subsidized rates will be notified by the OMCs on monthly basis.Â
d) No increase in the price of PDS Kerosene which is currently Rs. 14.83 per litre (at Delhi). The under-recovery of the OMCs on sale of Kerosene during 2012-13 will continue to be about Rs.32,000 crore.Â
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