In view of substantial drop in bulk fuel sales, Oil ministry is mulling a partial rollback of bulk diesel prices. In January 2013 government had decided to raise the price of subsidized diesel in small amounts every month and also asked bulk buyers to pay market rates for diesel. However, since then, the sales of bulk diesel had gone down from 18% of the overall diesel sales to 10%. As, all state transport utilities are depending on retail outlets, leaving railways and defense as the only bulk consumers in the country.
Meanwhile, the Petroleum Secretary Vivek Rae has underscored that suggestions put forward by Kirit Parikh panel for a higher dose of monthly diesel price would also be taken up before the Cabinet soon. The Parikh committee, among other things, had suggested Rs 5 hike on diesel prices, Rs 250 a cylinder increase in the price of domestic cooking gas and Rs 4 a litre in kerosene oil, with immediate effect.
Oil Ministry too has highlighted that there was a need to review the subsidy sharing mechanism to ensure that upstream companies get about $65 a barrel on sale of crude oil, which is currently in the range of $40-42 a barrel. This move would be a big positive for upstream oil companies like Oil and Natural Gas Corporation (ONGC) and Oil India, while the Parikh panel has suggested keeping GAIL India out of subsidy sharing mechanism.
Meanwhile, the Petroleum Secretary Vivek Rae has underscored that suggestions put forward by Kirit Parikh panel for a higher dose of monthly diesel price would also be taken up before the Cabinet soon. The Parikh committee, among other things, had suggested Rs 5 hike on diesel prices, Rs 250 a cylinder increase in the price of domestic cooking gas and Rs 4 a litre in kerosene oil, with immediate effect.
Oil Ministry too has highlighted that there was a need to review the subsidy sharing mechanism to ensure that upstream companies get about $65 a barrel on sale of crude oil, which is currently in the range of $40-42 a barrel. This move would be a big positive for upstream oil companies like Oil and Natural Gas Corporation (ONGC) and Oil India, while the Parikh panel has suggested keeping GAIL India out of subsidy sharing mechanism.
No comments:
Post a Comment