Diesel prices up by 51 paisa as GOI edges towards deregularisation
Diesel prices up by 51 paisa as GOI edges towards deregularisation. The Government has raised the cap on subsidized LPG to 9 cylinders per household from a current 6.
This hike comes in with a decision to charge bulk consumers such as the defence, railways and state transport organisations a price which is Rs.10 per liter more than current prices. This will go a long way in saving approximately Rs.12, 907 crores in annual subsidy.
On the same note, the Government has succumbed to pressure and raised the cap on subsidized LPG to 9 cylinders per household from a current 6 which has made many heave a sigh of relief. Fuel subsidies are a major cause of concern as it puts additional pressure on the India budget which is running in deficit. Fuel consumption in India rose by 5% in the last fiscal and analysts surmise that any further price increase will adversely affect demand.