Business News This Week
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.
