Diesel , LPG and Kerosene Prices consider to increase

Wednesday 18 May 2011: Just three days after oil firms hiked petrol rates by a steep Rs 5 per litre, an Empowered Group of Ministers (EGoM) is likely to meet today to consider increase in diesel, LPG and kerosene prices.

An Empowered Group of Ministers (EGoM) headed by Finance Minister is likely to deliberate on oil ministry’s demand for a minimum Rs 4 a litre hike in diesel price and Rs 25 per cylinder increase in LPG rates to partly bridge the gulf between domestic prices and their international cost.

“A decision will be taken on raising prices of these items when the EGoM meets next week,” Mukherjee had told reporters earlier after West Bengal Assembly elections. EGoM was originally scheduled to meet on May 11, a day after polling in West Bengal ended but the panel meeting was postponed.

Oil companies are losing Rs 18.19 on sale of every litre of diesel at current price of Rs 37.75 per litre in Delhi. Besides, state oil firms lose Rs 29.69 a litre on kerosene and Rs 329.73 per 14.2-kg domestic LPG cylinder.

On the biggest ever hike in petrol prices, Mukherjee had said the decision was taken by the oil companies as the government had deregulated petrol pricing in June last year. Though Indian Oil, Bharat Petroleum and Hindustan Petroleum had been given freedom to decide on retail selling price of petrol, they informally consulted oil ministry on every revision.

The three had not revised rates since January as five crucial states including West Bengal, Tamil Nadu and Kerala went to polls. A day after state assembly results, the firms had hiked petrol price by Rs 5 per litre which was less than half of Rs 10.50 a litre increase need to cover for cost of crude oil which had touched a two-and-half year high of USD 110 per barrel.

“Decision on petrol prices is taken by oil marketing companies,” Mukherjee said. “For other petroleum products like diesel, LPG and kerosene there is the EGoM.” The Finance Minister said crude oil was ruling at USD 68 per barrel when diesel, LPG and kerosene rates were last revised in June 2010. Crude is now above USD 110 a barrel.

Hike in Diesel,LPG prices

Monday, May 16, 2011: A day after oil firms hiked petrol rates by a steep Rs. 5 per litre, Finance Minister Pranab Mukherjee had on Sunday said that a ministerial panel will decide on raising diesel, LPG and kerosene prices next week.

An Empowered Group of Ministers (EGoM) headed by Finance Minister is likely to deliberate on oil ministry’s demand for a minimum Rs. 4 a litre hike in diesel price and Rs. 25 per cylinder increase in LPG rates to partly bridge the gulf between domestic prices and their international cost.

“A decision will be taken on raising prices of these items when the EGoM meets next week,” Mukherjee told reporters here after meeting Congress MLAs elected in the West Bengal Assembly elections.

He, however, neither gave the date of the EGoM meeting nor the quantum of hike the panel may consider. The EGoM was originally scheduled to meet on May 11, a day after polling in West Bengal ended but the panel meeting was postponed and no new dates have been intimated yet.

CPI will observe today as “Protest day”

Monday 16 May 2011: The CPI will observe today as “Protest day” across the state to protest against the recent hike in petrol prices. The CPI State secretariat, which met here on Sunday, called upon the people to organise demonstrations and processions. CPI State executive members will take part in a dharna in front of the RMS office here today.

The executive, in a press note, said the hike was ‘anti-people’ and would lead to a rise in prices of essential commodities. Strong protests were needed to force the government to withdraw from moves to hike the prices of diesel, cooking gas, and kerosene, the press note said.

Kerala exclusive news Petrol Price Rs 5 Increased

Saturday, May 14, 2011: In the steepest hike ever, state- owned oil companies today increased petrol price by about Rs 5 per litre with effect from midnight tonight.

The increase in petrol price, which the oil firms had been holding since January even though crude oil had touched a two-and-a-half-year high, came a day after election results of five state assemblies were announced.

IndianOil, Bharat Petroleum and Hindustan Petroleum will hike rates between Rs 4.99 and Rs 5.01 per litre in Delhi with effect from midnight tonight.

Petrol in Delhi currently costs Rs 58.37 per litre.

The government had freed petrol price from government control in June but the state-owned oil firms had not raised prices on an ‘informal’ dictate from the oil ministry.

“The hike needed to make domestic rates at par with international prices was Rs 9.