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Sep 14, 2012, 09.08 PM IST
The latest price hike on sale of diesel may have sparked off a political debate has angered a common man too, but the raise was inevitable to ease economic pressures, say industry captains.
The latest price hike of diesel has sparked off a political debate and has angered the common man too. But economists argue that the raise was inevitable to ease economic pressures.
With this increment, diesel will now cost Rs 52.45/litre, which is a two-fold jump from Rs 23.29/litre available in September 2002. Based on Kirit Parikh committee's recommendations, the government decontrolled petrol in June 2010, but diesel continued to be subsidized. Oil marketing companies like HPCL , BPCL , IOC were selling the fuel at least Rs 13-15/litre lower than its actual cost.
Post the hike in diesel prices and capping of LPG cylinders to 6 per family, OMCs will see their under-recoveries shrink by roughly Rs 20,300 crore in FY13 than the earlier estimation of Rs 1.8 lakh crore.
May 22 2013, 11:25
- in FII View
May 22 2013, 10:44
- in Economy