A hike of nearly Rs. 10 a litre for the bulk diesel consumers that includes the railways, transport undertakings and the defence, cement, mines and power sectors will trigger an all-round hike in public transport costs, rail fares, cost of cement and other infrastructure related activity across the country.
The oil marketing companies (OMCs) have also quietly raised the price of the domestic non-subsidised LPG cylinder by Rs. 46.50 paise, a move that is likely to impact those who consume more than nine cylinders a year.
Indian Oil Corporation (IOC) announced that for the bulk diesel consumers taking supplies directly from the installations of the OMCs, no subsidy shall be available and the price shall be non-subsidised market determined price. Accordingly, the price for these consumers shall stand increased by Rs.9.25 a litre. This is likely to result in an annual subsidy saving of Rs. 12,907 crore for the OMCs.
The impact of the price hike will be that under recoveries on diesel, both bulk and retail, shall decrease by around Rs. 3400 crore till March 2013. Based on the current prices and volumes, the decrease in the under-recoveries on an annual basis will be around Rs.15, 000 crore for the OMCs.
In the case of the hike in the price of the domestic 14.2 kg non-subsidised LPG cylinder by Rs. 46.50 paise, it will be over and above five subsidised cylinders that consumers are entitled during 2012-13.
Interestingly, the OMCs last hiked the price of non-subsidised LPG by Rs. 26.50 on November 1, but had to roll it back within hours following an outcry from the Opposition parties, within the ruling coalition and people at large.
Now a subsidised cylinder will be available in Delhi for Rs. 410.50. A non-subsidised cylinder’s price will cost Rs. 942.
The increase in under-recovery on account of the increase in subsidised LPG cylinder will be Rs. 5200 crore for the OMCs till March 2013. Based on volume and current prices, the increase in under-recoveries on an annual basis shall be Rs.10,000 crore for the OMCs.
The government has quietly sugar-coated the hike in the price of non-subsidised cylinders with a raise in the cap of subsidised cylinders to nine from six to prevent any backlash from political parties.
Keywords: non-subsidised cooking gas, LPG rate, diesel price hike, LPG cylinders
• As you are well aware that the Oil Companies with co-ordination with Govt. of India has raised the price of High Speed Diesel (HSD) with apportionment. For whole retail outlets the increase is Rs. 0.54 paisa (in approx) per litre and for bulk / direct/ industrial consumers’ is a whooping Rs. 11.53 (in approx) per litre of HSD. This has led to the fishermen’s alienation.
• As we have all learnt that the fishing activities directly come under AGRICULTURE Sector and most of the Government machineries either the central or the state has been practicing and favouring the policies calling the interest of every individual related to AGRICULTURE & FISHING ACTIVITIES.
• The members of the fishing Societies all over INDIA are facing fish famine and is gradually moving towards crisis and with this hike the day would come soon whereby the fishing shall be the chapters of History.
We should switch over to natural gas for transport and power
generation.
And purified biogas (biomethane) is equivalent to natural gas. In
countries like Germany, biomethane is already being injected into
their natural gas grids. Sweden is already using biogas to meet 25% of
its energy requirement with majority being used for heating and as
vehicle fuel including that for trains.
This is the most ridiculous pricing mechanism one can think of. It places the state transport
undertakings at a unviable disadvatageous position against private bus operators who will get diesel at a price rupees 12 less compared to public undertakings. This will lead to fare increase to sustain state undertakings but will result in windfall profits to private operators which they are not entitled to. This I dual price mechanism can be termed unfair trade practice and must be challenged in a court of law. Consider the scenario if conductors are allowed to fill diesel in retail outlets how can oil companies legally prevent this
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