India likely to increase LPG, kerosene prices
Friday, 5 February 2010
NEW DELHI, Feb 04 (Commodity Online): India is likely to increase natural gas, cooking gas and kerosene prices based on the recommendation by a committee which submitted its report Wednesday.
Speaking to reporters here, India's Petroleum Secretary S Sundareshan said the government will decide soon on raising price of natural gas produced by state-owned ONGC and Oil India by 30 per cent.
Under pooling of prices, the producers will get the price as per the production sharing contract between them and the government. But the consumer prices will be uniform irrespective of the source of gas.
The Committee, set up by the Indian government to draft a fuel pricing policy, also made a slew of recommendations including freeing retail pricing from the government regulations.
In its report the committee said India's subsidy-driven fuel pricing policy has to be drastically overhauled to help the petroleum industry stay competent in an uncertain market environment.
The committee has recommended an increase of Rs 100 per LPG cylinder and Rs 6 per littre of kerosene.
The committee also said the oil marketing companies are suffering a loss of Rs 3 per every litre of petrol being sold, suggesting freeing up the retail pricing of the commodity from government regulations.
Speaking to reporters here, India's Petroleum Secretary S Sundareshan said the government will decide soon on raising price of natural gas produced by state-owned ONGC and Oil India by 30 per cent.
Under pooling of prices, the producers will get the price as per the production sharing contract between them and the government. But the consumer prices will be uniform irrespective of the source of gas.
The Committee, set up by the Indian government to draft a fuel pricing policy, also made a slew of recommendations including freeing retail pricing from the government regulations.
In its report the committee said India's subsidy-driven fuel pricing policy has to be drastically overhauled to help the petroleum industry stay competent in an uncertain market environment.
The committee has recommended an increase of Rs 100 per LPG cylinder and Rs 6 per littre of kerosene.
The committee also said the oil marketing companies are suffering a loss of Rs 3 per every litre of petrol being sold, suggesting freeing up the retail pricing of the commodity from government regulations.