Diesel and LPG rates may go up - Kelkar Reports

Diesel, LPG and kerosene prices may go up as soon as UPA government gives a green signal to the Vijay Kelkar Committee's reports.

Vijay Kelkar Committee is appointed by the Finance ministry to suggest a path to reduce fiscal deficit and improve financial strength of the country. As per its reports, Kelkar Committee suggests immediate hike in diesel prices, which in later case will be efffective for both LPG and kerosene too.

The committee suggests complete deregulation of diesel prices by start of 2014-15. While addressing the media reporters Oil Minister M Veerappa Moily said, "That (Vijay Kelkar committee recommendation on deregulating diesel and raising kerosene and LPG rates) is a proposal. It is still at proposal stage. The (Petroleum) ministry is only processing that report and we are yet to take a decision."

If Government goes as per the reports of Kelkar committee, then diesel prices will be subsequently going up in the next year to bring complete deregulation on diesel prices. Right now diesel price in Delhi is Rs. 47.15, which has its steep change of Rs. 5.63 in last September.

Oil companies are now a taking a loss of Rs 10.16 per liter diesel, Rs 32.17 a liter kerosene and Rs 490.50 per 14.2-kg cylinder LPG. So as per the reports - with the hike in price, it will be soothing for both the companies and people. While talking to press, oil minister also focused on increasing the cap on subsidized gas cylinders from 6 to 9 per year.

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How should Common Man Deal with High Oil Prices?

This is kind of issue, that has lead to the fall down of many governments and lead to many protests by the public and various parties, but strangely, no solution could ever be made out. There are various reasons as to why the oil prices keep increasing. But the point is, how a common man, can cope up, with the ever increasing oil prices.

The budget for the fuel, is ever increasing, but not the pay check, so what’s the solution. If possible, the best way to reduce the fuel budget is to depend on the public transport system, all that you need to do is to start a bit early from the home, and take a few minutes’ walk. There are buses operating, and share autos moving in and around all the major places with in the city.

If you have good relations with your team members or co workers or peers, you can team up with someone near to your living place, and go with him or her in their vehicle, you can share their fuel expenses, this way, you will save some money on transport or fuel, they will save their money and both will travel in comfort.

If you are not comfortable with any of the options, and want to use your own vehicle, ok. But you can keep its usage to the minimum, only from office to home and home to office. When going to other places, where there are no, should be in time problems, you can use public transport. Now a days we have got so used to using vehicle that even to go the end our street we use vehicle, we can stop doing this.

For nearby places we can go by walk, good for health and good for pocket. Or you can share your fuel expenses by taking along with you, one of your peers and asking him to share the fuel expenses, this way both are at profit.

Last, but not the least, keep praying to God that some day for the benefit of common man, fuel prices will go down. Not a bad idea. So, keep going Guys.

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Petrol Price to go up Again?

Business News: The petrol price in India might go up by 0.65 paise from this Friday following fall in the value of rupees against US Dollar. The costly Dollar made the imports costlier, which has big impact on Indian economy too. The oil companies in India reportedly got the approval from the government for the possible hike in the petrol price.

It will impact the household budget of common man in India, where they have to pay more for the petrol comparing to the other nations in the world. Recently, the oil companies have slashed the price of petrol by around Rs. 2 and now the again hike would be big blow for the people to pay for it.

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Petrol Price to Go Up Again?

There are indications as per the media reports that the price of petrol (Gasoline)may go up once again in India. In a bid to overcome from the financial loss, fuel retailers have been advocating for another hike in the petrol price in India.

Further hike in the fuel prices will directly have impact on the headline inflation and prices of goods and services in India. Earlier, the railway has hiked the freight charges. The inflation in India is near to to the double digit and the further hike would make to double digit.

On the other hand the the apex bank has been trying to check the inflation, made variation in the key interest rates as many as 13 times. And also to attract the fund to banks in form of deposits it too historic step to give best interest to saving accounts.

State run oil companies have been putting pressure to hike the petrol price by Rs. 1.82 per litre to cover their loss. And the burden will be on the Aam Admi, the common man of this country.

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Oil Price: $111 for a barrel, India's concern

Oil prices steadied near $111 a barrel on Thursday. It was expected that on the day the oil prices would touch a record high. The US Energy Information Administration's inventory report, closely watched by the market, showed Wednesday that crude stocks fell 3.2 million barrels last week. On Thursday, the oil price rose 2 cents to $110.89 a barrel in Asian electronic trading by mid morning in Singapore.


The fluctuation in the oil price is a concern for the world as any rise in the oil price will have impact on the value of dollar in the international market. The US economy is under recession that causes slow down of world economy. The oil price rise will have an adverse effect on the Indian economy, as the nation is facing the three years high inflation pressure of 7 per cent. There is rise in the food price which is the big concern for the nation to keep this under control. The government has already rose the price of diesel and petrol before the union budget. People would not be in a mood to see the further rise in the oil prices. However, the oil price ups and downs is the prime concern of the government of India as it has to face the situation anyway.

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