Minister wants LPG subsidy to be lifted

For RPN Singh, reforms begin at home. Exhorting the well-off to pay market price for cooking gas on Monday, the MoS for petroleum said he would be the first to volunteer for giving up subsidized fuel.

Addressing an industry meet on petroleum, Singh said subsidized cooking gas was meant only for the poor and the needy and the rich "should take the initiative voluntarily to give up subsidized LPG".

A cooking gas cylinder costs Rs 399 in Delhi and Rs 398 in Mumbai because of government subsidy. At current market rates, a refill would cost Rs 287 more. Depending on the international price of the fuel, the market rate of a cylinder could even shoot up to double the present price.

"There may be many others like me who would want to pay market price since subsidy is not for them. I am going to write to companies, industry associations and other stakeholders on how to go about the issue," said Singh.

Singh, who is in charge of ensuring fuel supplies throughout the country and struggling with mounting subsidy bill, appears to have been forced to look for volunteers after the ministry shelved a proposal to limit the number of subsidized cylinders to four in a year. For every subsequent refill, the proposal envisaged, consumers would have had to pay market price.

Singh said the idea is to replicate what happened some years ago, when people who could afford it stopped buying foodgrains from PDS shops despite having ration cards. His idea is to first have ministers, MPs, bureaucrats and the senior management of public sector companies to give up subsidized cooking gas voluntarily. Taking the cue, other sections like corporate executives and businessmen would also follow suit.

One way of doing it could be that affluent continue buying subsidized cooking gas and pay the difference between the market price to the oil companies directly through cheques. The other way would be that these classes start buying the blue-coloured 19-kg cylinders that are being sold at market price.

Singh said the fuel subsidy bill for this fiscal is projected at Rs 132,000 crore and such bold moves are needed to cut this down.

Indian petrol price higher than neighbouring countries

Petrol in India is not just costlier than in the neighbouring countries Pakistan and Nepal, but its price has also seen higher increase since April last year.

Even after the November 16 reduction of Rs 2.22 per litre in rates, petrol at Rs 66.42 a litre in Delhi is costlier than Rs 48.64 a litre in Pakistan.

Whereas in Sri Lanka it is Rs 61.38 per litre and Rs 65.26 per litre in landlocked Nepal. Incidentally, Nepal does not have a refinery and imports all its requirement from India.

Giving this information in a written reply to a question in Rajya Sabha, Minister of State for Petroleum and Natural Gas R P N Singh said petrol price in India has risen 39 per cent, or Rs 18.49 per litre, since April 2010.

Petrol in Delhi cost Rs 47.63 per litre last year. The hike in rates in Paksitan is lower at 26 per cent - from Rs 38.74 per litre to Rs 48.64 a litre. Sri Lanka has seen a 36 per cent increase from Rs 45.23 per litre in April 2010 to Rs 61.38 a litre at present.

In Nepal, petrol price when up from Rs 49.98 per litre to Rs 65.26 a litre currently, an increase of 31 per cent.

To another question, Singh said nearly 45 per cent of the current retail price of petrol in Delhi is made up of taxes.

The refinery price of petrol is just Rs 36.82 per litre, on top of which Rs 2.25 in inland freight and marketing cost and margin is added. Besides, Rs 14.78 per litre is the excise duty component and Rs 11.07 a litre is the sales tax that Delhi government charges. Another Rs 1.50 is the commission that petrol pump dealers earn.

Petrol price raised, but more to come

Petrol prices were hiked as already posted on Consumer World on 26th April. But it wasn't just another raise of 2-3 RS instead it was a whopping 5 Rs/l, the steepest ever hike. The oil companies are looking too increase the price even more!!

Petrol prices should have been raised by about 10 rupees a litre but we have increased them only by 5 rupees in public interest, said R.K. Singh, head of BPCL

This is the seventh time in 11 months that petrol prices have gone up and are set to upset household budgets, already reeling under the burden of higher food costs and loan installments.

And as if this was not enough, you may have to deal with Rs 4 hike in the price of diesel and cooking gas cylinders could cost Rs 25-50 more. The ministerial panel on fuels is expected to take a call on raising these prices next week.

Petrol prices to be hiked again

Its about to happen again, oil firms are about to raise prices of petrol , possibly after May 10 when the state polls end.

Their could be an increase of about 3 Rs on petrol, which could be announced on 15th of May. The hint of an imminent price revision came from Ranbir Singh Butola, chairman of Indian Oil Corporation, which controls 55% of the market. "We would do it (increase rate) at the earliest possible," he said.

Government always raises the petrol price when it goes up in international market, but when falls , They do not reduce the price accordingly. Common man is already facing brunt inflation and this will only add to their woes.