Rates of diesel, LPG and kerosene left untouched
The UPA-II, celebrating three years in office, gave the “common man” a gift on Wednesday: the steepest- ever increase of Rs. 7.54 in petrol prices. The increase is the first in the past six months.
Petrol price in Delhi was increased by Rs. 7.54 a litre to Rs. 73.18 with effect from midnight Wednesday, the state-owned oil marketing companies said in separate, but identical, statements.
However, the rates of diesel, LPG and kerosene, raised in June last year, have been left untouched. But officials said the government would soon have a look at them as they also needed an increase to save the oil marketing companies from going bankrupt.
The previous steepest increase in petrol prices was Rs.5. The oil marketing companies had twice raised the prices by Rs. 5 — on May 15, 2011, when the rate in Delhi was increased from Rs. 58.37 to Rs. 63.37; and on May 24, 2008, when it was jacked up to Rs. 50.56. The increase comes after a 14.5 per cent rise in crude oil prices and a 3.2 per cent fall in the value of the rupee.
With Thursday's increase, petrol will cost Rs. 78.57 a litre in Mumbai, against Rs. 70.66. In Kolkata, the rate will go up by Rs. 7.85 to Rs. 77.88. In Chennai, it will be Rs. 77.53, up by Rs. 7.98.
Interestingly, on Tuesday, Petroleum and Natural Gas Minister Jaipal Reddy hinted at a price increase, arguing that the rupee depreciation had badly affected the oil companies.
The oil marketing companies, which had lost Rs. 4,860 crore on petrol sales in the fiscal to March 31 this year, are now losing Rs. 6.28 on a litre of petrol. Factoring in the 20 per cent value-added tax, the desired increase in Delhi comes to Rs. 7.54. The companies are losing Rs. 512 crore a day on the sales of diesel, domestic LPG and kerosene. Diesel is now sold at a loss of Rs. 15.35 a litre, kerosene at Rs. 32.98 a litre and a 14.2-kg domestic LPG cylinder at Rs. 479.
The companies had together lost Rs. 138,541 crore in revenue during 2011-12. This year, the loss is projected to be Rs. 193,880 crore. During 2011-12, petrol prices were revised five times in order to bring domestic prices in line with those in the international market. The rates were increased on three occasions and lowered on two. During the last revision, on December 1, the rate was brought down to Rs. 65. 64, by Rs.0.78.
Keywords: petrol price hike
Citizens should be educated to reduce amount of fuel consumed. If something can be accomplished by walking or by cycling instead of using a motor vehicle it will be more healthy for the person, environment, wallet and country's economic health.
Why oh why does the price of petrol in India go up and not down?! Everybody could come up with stories of inflation, rupee devaluation, political pornography and other such wonderful alibis!
Just when everybody was saying India is 'super power' and that Indians are now wealthier and big spenders, now comes burning pockets and the woes of using petrol driven vehicles. My dear fellow countrymen...follow our great leader Mahatma Gandhiji...he used to cycle to speech venues and walked miles. Why can't cycle rickshaws and 'tangas' come back to vogue? The lazy and fattened Indians of today should start walking and cycling like their granddads used to do...hence save on pollution, big holes in the pocket and curses on roads.
Let's all start cycling and using solar and wind powered things...did n't we learn all this in school?! Shame that we are not educated but have merely 'passed' school for the sake of it.
Petrol prices have tripled for a common man in the last 13 years but the
country top civil servants haven't had to deal with a fuel hike since
1999.Senior Govt. officials just pay Rs 700 / month to use their Air con
official cars for private purposes.This country is full of double
standards!
There is no hope for common man in India and life will only get tougher
and poor will get poorer. Due to rising prices, the poor will get even
poorer and this will lead to more crimes and lawlessness and corruption
and more frauds and the vicious cycle will never end. If anyone can
leave the country and go abroad, that is the best solution. With our
exploding population and our system we created called democracy where
everyone has rights and no accountability, no one can change it.
Only God can help the common man!
In spite of the tall claims by the Congress leaders, in reality, the
UPA rule led by the Congress has been a damp squib with a series of
scams, policy paralysis, rampant corruption, rising prices of essential
commodities apart from the steep hike in LPG, petrol and diesel. The
economy has been in the doldrums with the rupee plummeting an all time
low. There was a slump in GDP in addition to high inflation. To cap it
all off, Adding insult to injury the central government has just hiked
the price of petroleum by a whopping 7.50 per litre which will break
the backbone of the common man.
The Central govt(which ofcourse includes the finance minister) has now taken a little remedial action. The increase shd have been Rs.10/- The FM shd have also raised the prices of LPG and CNG and Deisel selectively used by car owners and high income people.
I would like to answer the comment given by Mr. Abhijeet time for leaving this country now.sir dont think like Air India pilots who ran away in difficult situations.Please being an good citizen of India understand the problem of government than comment.
I have bought a bicycle and sold my bike. Cannot afford to buy petrol. I have also stopped voting for this is not democracy.
the petrol rate is gone up the goverment needs to sum thing bout it people is suffering.
Not a single thought for the common man.....Why do these oil companies
do marketing with players paying them crores of rupees to promote their
products....This should be immediately stopped coz they are the
companies which are selling our natural resouces and they should not do
marketing for it as it will be sold as it is available.
Dear I think either govt does not have any solution to the problem or govt does not want to resolve the issue.
through the medium i would like to suggest the Government to cut down VAT of petroleum prices will definitely comes down if government really want to care of their people so pl take decision people orientated approach other wise it will be very problematic to handle the situation arise because of that
i urges all the people of india to come farward and let save our nation from these leader so called parasite .let take the oath we shall over come and we shall change the whole system where there is no cry,no pain ,no corruption, by simple giving quotes will not help us to get ride of this so called disease lets take the action and walk together to see new beginning of new era so do not wait pl start against worst polices if we do not start day we have to wait for more 100 year so do come from urs binding and listen to urs heart to the right thing at right time.
@Jitendra Dutta..
You might have a point in saying that the price rise is necessary. But my question is "Why there is no fall in price of petrol when the oil price/barrell falls in the international market?". The Oil companies in India never reduces the price when the price falls in the international market. The problem with many Indians they don't understand that oil is an "international commodity" and the price of oil has to rise and fall accordingly.
Its time that government start spending our hard earned cash on providing better public transport,major part of vehicle user are commuting by private transport because of unavailabilty of better public transport services.Else who prefer to ride kms on bike in such a hot weather...It will be even more effective if the public servies provided are not based on petrol or Diesel.
hike in petrol prices are just an intimation of how bad can things can become in future...
With another steep rise in petrol prices we once again have to listen to all the "reasons" for
this step while leaving the more heavily subsidized diesel and lpg unchanged. We are told
that petrol is used by the middle class whereas diesel is used by the poor. Really? So I
belong to the middle clas when I drive my petrol two wheeler in the morning but join the
ranks of the poor in the evening when I drive my diesel air conditioned car! We are told that
the price of petrol is still below international prices. But now at AU$ 1.50 per litre, it is
higher than the $1.40 paid in Sydney or Melbourne. And there is always the excuse that the
rupee is falling due to "international events" and this drives prices higher. But the truth is
that the rupee is falling due to enormous mis-management of the economy by both the
central and state governments. Just ask Moodys or S&P.
@all those who are outraged by price hike: Please enlighten us, with the soaring oil import cost in US dollars how does a country like India pay for this import without raising the petrol price? When Indian people buy cars they ought to also consider the price of petrol or diesel required to run the car on a daily basis. India cannot afford to keep on subsidizing cost of petrol or diesel without bankrupting the country. Why do you think the rupee is depreciating in value? It is primarily because India's exports are declining but its imports are not due to extravagant cost of oil and massive amount of import. India needs to consume less oil to have a sustainable economy and balance of payment situation. Govt also needs to raise the price of diesel sooner rather than later. People should be ready to pay the actual market price of petrol and diesel, otherwise the oil companies and eventually India would go bankrupt under the burden of subsidy.
Still no permanent solution for this Petrol price hike. Whatever money govt will earn because of this hike, will straightly go to Ruling party/Ruling alliance men's pocket. From there it will straightly travel to Swiss bank through Kingfisher Airlines and then it will sleep nicely more than a decade. That is India! As long as this political system continues we will face this problem.
1. These all Oil PSUs do not have any control over their losses,
pilferages, vested interests, Widespread corruption, least investment
in loGistics, No Good enerGy practices and so many more complexities.
None of the refinery in India matches any benchmark set out by Shell,
Chevron or BP.
2. OMCs can never explain under-recovery to any one. The petroleum
pricinG remains a Grey area.
3. This is the same PM who advocated rationalization of taxes on ATF
because the primary receipient of that benefit were corporates.
4. This is the same PM who came forward for savinG kinGfisher and does
not have time to address Air India Crisis.
5. This is the same pro people Anti red Mamta Banarjee who sacked a
cabinet minister for raisinG train fare where in a common Man makes
only 1.8 trip per year. Now she only says the matter was not discussed
with her.
It is half crook truth that oil producing compaines are regulationg by International market. The fact is government seems to be unable to put restrictions on oil companies. If Petrol rate has been fixed by international norms then why is disel price is not? Companies are taking diffrent paprameter in term of pricing of pertrol and disel.Since last two year no country has been increased price of petrol like India.It shows that oil companies has been previleged and having more power rather government.This is sugggestion to government if it could unable to maange price hike of petrol and disel, better provide alternative option on this.
India has to move towards renewable energy and focus on safe and efficient transportation. You can't keep producing petroleum at this pace. We need to understand that price hike is just a small symptom of a bigger problem.
Petrol price hike and downfall of Indian rupee is a clear indication for downfall of Indian economy and the poor, lower, middle and upper middle class sections of Indian society suffer a lot with this steep hike. Irony is the best economist is our country Prime Minister and we witness weak political and administrative systems worst ever in Indian history.
This is an indication that all our systems in India totally institutationalised with subsidies to win a vote bank and subsequently paralyzed all systems and made Indian common citizen to die with this because all essential commodities will see a steep hike and people now left with no meal a day which was a meal a day earlier. Thanks to UPA-II.
Assuming an average price of Rs71/l, and assuming lowest record Rupee
Dollar rate of 56/USD, petrol cost per gallon is USD 4.42 and this is
still higher than petrol sold in any state in US!
Cleaner air at last! hopefully the price of diesel will also go up and
then, sometime in the future, the number of cancer patients will come
down.
Until the Rupee is stabilised,the Government can possibly limit import
of Oil and the Pumps can also limit filling to the extent of Rs.300 for
Two Wheelers and Rs.1000 for cars. The Government can consider reducing
the hike in price of Petrol to a tolerable level based on the latest
price of crude in the world market.The sale of cars will be affected
temporarily but will pick up after the situation is brought under
control.
Not surprising. Since Indian Oil has recently invested heavily in the losing/
expensive to maintain, business of nuclear power plants, how else can they get the much needed cash to realize their foolish dreams of planting dangerous nuclear power plants all over India? The nuclear business is the only business in India that is shrouded by a Secrecy Act so the best place to launder black money. And yes since Indians are so RICH surely they can afford the non cost effective and economy draining deadly outdated nuclear power plants over the CHEAP cost effective NEW sources of electricity like CSPs (concentrated Solar Plants) in Spain that provide DAY and NIGHT electricity using only sunshine (stored at night in a tower filled with simple Molten Salt) CSPs don't require expensive scientists to operate and provide free fuel electricity to entire towns! Germany is already producing hydrogen from water with CSPs to fuel their cars. We need young leaders who are up to date on new technologies!
Atrocity. Time has come to leave this country. Diesel is never raised. The pressure is always on petrol. Most of the high end vehicles today are running on diesel. Why is there no special tax these vehicles.
No election would either change this country because we do not have confidence in Congress, BJP and regional players trying to frame a new party.
Please Email the Editor