Global kerosene and LPG prices divergent to those of diesel, petrol and ATF

In the first price revision after the government capped the number of subsidised cylinders for consumers, domestic liquefied petroleum gas (LPG) has become nearly 17 per cent dearer, thanks to firm international prices. From October 1, the consumer price of every non-subsidised domestic LPG cylinder has risen to Rs 883 from Rs 756 last month.

A United Nations initiative to provide sustainable energy for the 1.6 billion people without power may reach as many as 300 million in three years, said Kandeh Yumkella, who is leading the effort.

The Delhi Cabinet on Monday decided to provide to 3.56 lakh poor families covered under the recently-launched Kerosene-Free Dilli Scheme three more LPG cylinders per annum at subsidised rates to soften the blow of the Centre’s recent decision to limit the subsidy on domestic cooking gas to just six cylinders per year.

The Delhi Government has decided to release the Rs.350 per cylinder difference between the price of a non-subsidised and subsidised cylinder in Delhi to meet this social obligation. The Government would thus be spending Rs.42 crore per annum to meet the additional cost of the three cylinders for the beneficiaries of the scheme.

IOC has been pleading with the government to move petrol back to a controlled regime

After two months of losses, oil marketing companies (OMCs) have started making profits on sale of petrol, thanks to the softening global price and an excise cut announced by the government last week. The OMCs have begun making a margin of around Rs 1 on every litre sold. The three — Indian Oil, Bharat Petroleum and Hindustan Petroleum — were losing around Rs 6 on every litre of petrol in the first fortnight of this month. To prevent any price increase in petrol, the government last Thursday cut the excise duty by Rs 5.30 a litre. Until then, it was charging Rs 14.78 through excise on every litre. The move almost covered the loss that the OMCs were incurring on petrol.

The Delhi government gave some relief to the people living below poverty line from the Centre’s decision of curtailing number of subsidised LPG cylinder. The city government on Monday decided to provide nine subsidised LPG cylinders instead of six to the BPL people of the city.

The decision was taken in a Cabinet meeting presided by Delhi chief minister Sheila Dikshit. Around 3.5 lakh beneficiaries who are under the government’s scheme of “kerosene free Delhi” can avail nine subsidised cylinders in one year. “Our government is committed to safeguarding the interests of common man. It has once again taken a significant decision to provide relief to the poor families by mitigating the effects of inflation as far as cooking gas is concerned,” Ms Dikshit told reporters here.

The two moves to cut OMCs' underrecovery by Rs 20,300 cr this year

In the second major oil sector reform after petrol decontrol of June 2010, the government on Thursday capped subsidised domestic liquefied petroleum gas (LPG) for a consumer to six per year. For a consumer using 12 LPG cylinders annually, the extra outgo on six additional cylinders at current market price will be Rs 2,106. Also, the diesel price was increased by Rs 5 a litre, while the excise duty on petrol was reduced by Rs 5.30 a litre to avoid a price increase.

Consumers may have to brace for steep hikes in the prices of petroleum products such as diesel, kerosene, cooking gas and petrol after Parliament’s monsoon session ends on September 7.

In a step that is likely to hit consumers further, the Petroleum and Natural Gas Ministry has moved the Cabinet for a hike in prices of diesel, LPG cylinders and kerosene. The Cabinet will also discuss putting a cap on number of subsidised cylinders for each household up to a certain income limit.

In addition, elected members, including Ministers, MPs, MLAs, MLCs and councillors, are likely to face discontinuation of subsidised LPG cylinders. The Ministry may impress upon the Cabinet to take a call on imposition of a higher duty on diesel vehicles in view of the massive jump in consumption of the fuel in the recent past. In July, diesel sales jumped by 12 per cent, sending the alarm bells ringing.

Chief Minister Sheila Dikshit on Tuesday intervened in the Delhi assembly discussion on public distribution system during Question Hour and noted that her government agreed with the Opposition that there was corruption in the system and therefore it was “looking for ways to provide ration and cash transfers to the families in a proper way to ensure food security”.

After a number of BJP members had questioned Food and Supplies Minister Haroon Yusuf on the issue of a large number of people being left out of the purview of the system, the Chief Minister said there was large scale diversion of kerosene and other supplies due to which the Centre decided to put a cap on the number of cards.

New Delhi Consumers may have to brace for steep hikes in the prices of petroleum products such as diesel, kerosene, cooking gas and petrol after Parliament’s monsoon session ends on September 7.