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The Union Cabinet is set to consider the petroleum ministry’s proposals to increase diesel, cooking gas and kerosene prices in its meeting stipulated for Thursday.
As per media reports the new prices will be effective from midnight Thursday if the Cabinet approves Oil Ministry’s proposal for fuel prices hike.
The Oil Ministry is suggesting revision in diesel, domestic cooking gas (LPG) and kerosene rates to the Cabinet Committee on Political Affairs based on recommendation of the Vijay Kelkar Committee, which was appointed by the Finance Ministry to suggest a roadmap for fiscal consolidation.
“(Kelkar Committee) report has already been submitted. He has given number of proposals. That is under serious consideration of the government,” Oil Minister M Veerappa Moily had said.
The panel had recommended an immediate hike in price of diesel by Rs 4 per litre, of kerosene by Rs 2 a litre and of LPG by Rs 50 per cylinder along with raising the number of subsidised cooking gas cylinders for households to nine a year from the current cap of six.
Price of diesel, which currently costs Rs 47.15 per litre in Delhi, was last revised on September 14 when it was hiked by a steep Rs 5.63 per litre. Kerosene rates have not changed since June 2011 and it currently costs Rs 14.79 per litre in Delhi.
Subsidised LPG costs Rs 410.50 per 14.2-kg cylinder and any household requirement beyond current cap of 6 cylinders is to be bought at near market price of Rs 895.50 per bottle.
State-owned oil companies currently sell diesel at a loss of Rs 10.16 per litre, kerosene at Rs 32.17 a litre and LPG at Rs 490.50 per 14.2-kg cylinder.
