Diesel price hiked by Rs. 5 per litre, petrol price left unchanged

[Rajveer]

Very bad news, we have to change this govt.

 

[jenius-jatt]

A very sad news and Rajveer you are right

 

[Bapun]

Diesel price hike lesser of two evils​

Proposal of tax on diesel cars put down by manufacturers as prices of diesel fuel hiked by Rs 5 per litre in all major cities

The first diesel price hike in more than a year clouds the only bright spot in the country's struggling car market, but carmakers will also be quietly relieved after lobbying hard against the gloomier alternative of a tax on diesel vehicles.

Diesel, a heavily subsidised fuel used mainly by farmers and in trucks and buses, has become increasingly popular as many middle class families look to cut their fuel bills, and diesel-powered vehicles are the industry's sole major growth area.

The hike of Rs 5 or 12 percent, announced by the government late on Thursday, comes after months of fierce lobbying by carmakers which argued a proposed tax on diesel-powered vehicles was unfair as it would leave other diesel consumers unscathed. Related: Now diesel gets dearer by Rs 5 per litre!

Even with the hike, petrol remains around 45 percent more expensive than diesel and shares in automakers rose in relief that the government had chosen not to slap a tax on diesel vehicles.

Maruti Suzuki (BSE 4.28 %) India Ltd, the country's biggest carmaker, climbed 2.4 percent while Tata Motors (BSE 4.32 %) Ltd rose 3.3 percent and Mahindra & Mahindra Ltd was up 1.1 percent.

"The way the price difference between petrol and diesel had grown was not desirable. There was a need for an increase," Sugato Sen, senior director of the Society of Indian Automobile Manufacturers, told Reuters after the announcement.

"It would have been better to have a smaller increase, but it is still definitely much better than a tax on diesel cars."

Diesel vehicles accounted for 40 percent of car sales last fiscal year, twice their share in the previous year. Car sales look set to fall below industry estimates of 10 percent growth this year, as high interest rates and sluggish GDP growth dampen demand.

Over 80 percent of new orders for market leader Maruti Suzuki's Swift hatchback are for the diesel version, while passenger vehicle sales at Mahindra & Mahindra, which almost exclusively builds diesel-powered utility vehicles, are up an annual 30 percent in the first five months of the fiscal year that began in April.

Raising the price of state-subsidised diesel is seen easing New Delhi's subsidy burden and a widening fiscal deficit.

Source

 

[Bapun]

Before the Central Govt gets out of power it wants to steal every single hard earned penny from common people. :angry

 

[nskaran]

Before the Central Govt gets out of power it wants to steal every single hard earned penny from common people. :angry

exactly very very well said admin:k

 

[Bapun]

Diesel price hike a step in right direction: Prime Minister Manmohan Singh​

NEW DELHI: Unfazed by large scale protests over diesel price hike, Prime Minister Manmohan Singh on Saturday asserted it was a step in the right direction and expressed the hope that economy would rebound in the second half of the current fiscal.

"The recent increase in diesel prices is an important step in the right direction," he said while addressing the meeting of the full Planning Commission which was called to approve the 12th Five Year Plan document.

The Prime Minister also made a case for comprehensive review of energy policy, saying it was vital for energy security of the country.

Energy, Singh said, "is a difficult area where policy needs a comprehensive review. We are energy deficient and import dependence is going up. It is vital for our energy security that we increase domestic production and also increase the energy efficiency.

"Rational energy pricing is therefore critical. Our energy prices are out of line with the world prices", he added.

The government had recently increased the price of diesel by Rs 5 a litre and capped the use of subsidised LPG cylinder to six in a year per family, evoking sharp protests all over the country.

Source

 

[Rajveer]

Go more right PM sir & hike petrol price also & give free poison to mango people.

 

[Bapun]

Post hike, diesel still cheaper in India than in US, Pakistan​

NEW DELHI: The steepest ever Rs 5.63 a litre hike in price not withstanding, diesel in India is still cheaper than its neighbours Pakistan and Bangladesh as also the US and the European countries.

Diesel prices were on September 14 raised by Rs 5.63 per litre to Rs 46.95 a litre in Delhi.

Even so, diesel in India costs less than Bangladesh where a litre costs Rs 49.08, and in Pakistan - Rs 59.56. In Nepal, it costs Rs 57.91 per litre, according to a background note prepared by the Ministry of Petroleum and Natural Gas explaining rational for price hike.

In the US, diesel is priced at Rs 54.55 per litre while it costs Rs 77.84 in France, Rs 83.36 in Germany, Rs 99.38 in the UK and Rs 93.11 in Italy.

The first hike in more than 14 months was triggered by a 28 per cent surge in crude oil price and rupee value dropping about 24 per cent against the US dollar -- from Rs 44.85 to a US dollar in July 2011 to Rs 55.58 this month, making imports costlier.

India imports 79 per cent of its oil needs. The note said oil firms were losing a record Rs 17.05 per litre on selling diesel at retail price of Rs 41.32. At this rate, Indian Oil ( IOCBSE -2.24 %), Hindustan PetroleumBSE -2.61 % ( HPCL) and Bharat PetroleumBSE -1.27 % ( BPCL) were projected to lose Rs 1,17,780 crore in revenue on sale of just diesel in current fiscal.

This was besides Rs 32.70 per litre loss on kerosene and Rs 347 per cylinder deficit on domestic cooking gas (LPG).

The increase in price would help trim the losses on diesel sales by about Rs 15,000 crore during the remaining part of the current fiscal.

"Financial health of oil retailers has been deteriorating over the years. In 2011-12, they reported a combined net profit of mere Rs 6,177 crore, which was only 0.7 per cent of their combined turnover of Rs 8,22,828 crore," the note said.

Oil retailers borrowed heavy to fund crude oil imports. Their combined borrowings as on March 31, 2012 was Rs 1,28,272 crore and their interest burden was as high as Rs 9,529 crore.

The borrowings increased to a whopping Rs 1,57,617 crore as on June 30. "The increased borrowings resulted in rising interest cost of the oil companies, which has been Rs 2,919 crore for the first quarter alone of the current fiscal."

While raising diesel prices, the government left kerosene and cooking gas (LPG) rates unchanged.

Kerosene in Delhi is priced at Rs 14.83 per litre while it sells at Rs 54.60 in Pakistan, Rs 41.36 in Bangladesh, Rs 44.12 in Sri Lanka and Rs 57.91 in Nepal.

Similarly, a 14.2-kg LPG cylinder costs Rs 399 in Delhi while it priced at Rs 955.42 in Pakistan, Rs 540.36 in Bangladesh, Rs 1,135.54 in Sri Lanka and Rs 884.94 in Nepal.

Source

 

[Greatachiever]

Finally some good news may behuh

The government may partially rollback cap on subsidised LPG, reports CNN-IBN. Sources say that the government is considering raising the cap from six to 10 cylinders.

Section of the Congress and its allies, the TMC and DMK, demanded a rollback after the government decision to limit the subsidy to just six LPG cylinders in a year (per family).

Prime Minister Manmohan Singh is expected to speak to West Bengal Chief Minister Mamata Banerjee today. Sources say that the government is expected to reach out to its ally Trinamool Congress, and discuss a compromise over the cap in subsidised LPG cylinders.

good pressure tactics used by Mamta Banerjee. she is only fighting for this case.

 

[Greatachiever]

After talks of a partial rollback, the LPG cap for poor has been raised to 9 in Delhi today.

The government restricted the supply of subsidised cooking gas to six cylinders per household in a year, prompting angry responses from Mulayam Singh Yadav and Mamata Banerjee, who has demanded a rollback.

Prime Minister Manmohan Singh on Saturday had said that it will take "courage and some risks" to break the policy logjam in the country.