Approval given for increasing the price of kerosene by 25 Paise per litre every month
Posted on: 15/Jul/2016 9:51:32 AM
For the 1st time in the last 5 years, the central government has increased the price of kerosene by 25 Paise per litre.
A recent information says that this is not a 1-time increase. The price of kerosene will increase by 25 paise per litre every month till April next year.
With the approval from the central government, Indian Oil, Hindustan Petroleum, and Bharath Petroleum get set to increase the price of kerosene every month.
With this measure, it is expected that the price of kerosene will reach the level of the market prices by the end of this financial year and the subsidy of the government will come down by Rs. 1000 Crores.
A Public Relations Official from India Oil informed that as per the guidelines are given by the central government, for the next 10 months (including July), the price of kerosene distributed will be increased by 25 paise every month.
During June 2010, the government regulations on the price of petrol was withdrawn under the UPA.
The price of diesel was also increased by 50 paise every month. This approach was a boon to the new central government formed by BJP. During October 2014, the price control regulations on diesel were also withdrawn.
The oil companies currently fix the prices of petrol and diesel on the basis of the price of crude oil in the international market.
Currently, only LPG cooking gas and kerosene are sold with the subsidy. The oil companies incur a loss of Rs. 13.12 per litre on kerosene. The loss incurred by the government on the subsidy of LPG cooking gas cylinder is Rs. 116/-.
Out of the loss of Rs. 13,16 incurred b the oil companies on kerosene, the central government pays them Rs. 12/- as subsidy. The balance loss is borne by ONGC and Oil India.
The total subsidy undertaken by the central government during the 2015-16 financial year was Rs. 27571 Crores. Out of this, the subsidy on kerosene was 42 percent.
