New Delhi: The union cabinet is likely to give a ‘go-ahead’ to Oil Ministry’s proposal to hike the diesel and cooking gas prices. (JPN/Agencies)
Oil Minister M Veerappa Moily on Wednesday said that the government is "seriously" considering revising rates of auto and cooking fuels.
"All price hike or price reduction... proposals are under serious consideration. We have not taken any decision," he told reporters.
The ruling UPA's political leadership is holding consultations on options like raising diesel and LPG prices to cut an unprecedented Rs 1,60,000 crore revenue loss expected from selling auto and cooking fuel below cost this fiscal.
He refused to be drawn into what his ministry was proposing or when and at what forum would such a decision be taken.
"What Cabinet will discuss, that is a matter which I cannot disclose. What Cabinet proposal will be there, I don’t think it is a matter of discussion here," he said.
The Ministry is suggesting revision in diesel, domestic cooking gas (LPG) and kerosene rates to the Cabinet Committee on Political Affairs based on recommendation of the Vijay Kelkar Committee, which was appointed by the Finance Ministry to suggest a roadmap for fiscal consolidation.
"(Kelkar Committee) report has already been submitted. He has given number of proposals. That is under serious consideration of the government," Moily said.
The panel had recommended an immediate hike in price of diesel by Rs 4 per litre, of kerosene by Rs 2 a litre and of LPG by Rs 50 per cylinder. Thereafter, it suggested raising rates on a monthly basis till the revenue losses are wiped off.
Price of diesel, which currently costs Rs 47.15 per litre in Delhi, was last revised on September 14 when it was hiked by a steep Rs 5.63 per litre. Kerosene rates have not changed since June 2011 and it currently costs Rs 14.79 per litre in Delhi.
Subsidised LPG costs Rs 410.50 per 14.2-kg cylinder and any household requirement beyond current cap of 6 cylinders is to be bought at near market price of Rs 895.50 per bottle.
State-owned oil companies currently sell diesel at a loss of Rs 10.16 per litre, kerosene at Rs 32.17 a litre and LPG at Rs 490.50 per 14.2-kg cylinder.
New Delhi: The union cabinet is likely to give a ‘go-ahead’ to Oil Ministry’s proposal to hike the diesel and cooking gas prices.