Diesel deregulated, prices cut by Rs 3.37 a litre

October 18, 2014

New Delhi, Oct 18: In much-awaited reform, the government on Saturday deregulated diesel prices, a move that will result in a price cut of Rs 3.37 a litre with effect from midnight tonight.

Diesel deregulatedFinance Minister Arun Jaitely said the Cabinet in its meeting today decided to deregulate or free diesel prices. Retail rates will now reflect international movement in oil prices.

As a result, rates will be cut by Rs 3.37 a litre with effect from midnight tonight.

This is the first reduction in diesel rates in over five years. Diesel rates were last cut on January 29, 2009 when they were reduced by Rs 2 a litre to Rs 30.86.

Diesel prices were last raised by 50 paisa on September 1 and cumulatively risen by Rs 11.81 per litre in 19 instalments since January 2013.

There couldn't have been more opportune time for the decision. Oil prices are near a four-year low and two major state elections are out of the way.

Reserve Bank Governor Raghuram Rajan has recently called on the government to "seize this moment", while inflation is the lowest in five years and refiners are selling at a profit for the first time ever.

Brent crude has fallen 25 percent this year to around USD 83 per barrel and expectation is that it may not cross USD 100 barrel anytime soon.

The process was set in motion by the previous UPA government when it eliminated controls on petrol prices in 2010 and in January last year decided to raise diesel prices by up to 50 paisa a litre every month.

The result has been that petrol prices have moved in tandem with global cost and retail rates being reduced on five occasions since August on falling oil rates. Prices have cumulative come down by close to Rs 7 per litre in last two-and-half months.

On diesel, the entire under-recovery or loss has been eliminated and oil firms started making profit from second half of September. The over-recovery or profit has since reached Rs 3.56 per litre.

Deregulation would mean that the government and state-owned explorers including Oil and Natural Gas Corp (ONGC) are no longer subsidising diesel.

Finance Minister Arun Jaitley had budgeted Rs 63,400 crore for petroleum subsidies which was 25 per cent lower than previous fiscal. But unlike past, the subsidy bill is unlikely to overshoot the budgeted amount due to fall in oil rates.

Oil subsidy account for a quarter of Rs 2.51 lakh crore.

Originally, petrol and diesel prices were deregulated in April 2002 when the NDA government was in power. Administered pricing regime, however, made a back-door entry towards the end of NDA regime in the first quarter of 2004 when crude prices started inching up.

The Congress-led UPA controlled rates as international oil prices went through the roof. In June 2010, however, it freed petrol price from its control and rates have since then moved more or less in tandem with cost.

It had in-principle decided to deregulate diesel, which is used in everything from cars and trucks to back-up power generators and agricultural water pumps. The fuel accounts for 43 per cent of the nation's fuel consumption.

In January 2013, the then UPA government decided to deregulate diesel prices in stages through a monthly 50 paise a litre increase. Rates were last hike on September 1 after which losses have been wiped off.

It is estimated that under-recovery or revenue loss on selling diesel, LPG and kerosene at prices lower than imported cost this fiscal will be around Rs 86,080 crore.

This will have to be met by cash subsidy from government as well as dole from upstream oil producers like ONGC.

The under-recovery estimate for the current fiscal is lower than Rs 1,39,869 crore of last fiscal. In 2013-14, the government had provided Rs 70,772 crore by way of cash subsidy while upstream firms picked up Rs 67,021 crore tab.

Sources said the under-recovery in (April-June) was Rs 28,691 crore. This was mostly met by Rs 11,000 crore cash subsidy from the government and Rs 15,547 crore coming from ONGC, Oil India Ltd and GAIL. The remaining Rs 2,144 crore was absorbed by fuel retailers (IOC, BPCL and HPCL).

In second quarter, the under-recovery is estimated at Rs 21,198 crore with diesel accounting for Rs 2,848 crore as compared to Rs 9,037 crore in the June quarter. Kerosene under-recovery was Rs 6,950 crore (Rs 7,524 crore in Q1) and LPG was Rs 11,400 crore (Rs 12,129 crore in Q1).

While diesel losses have been wiped off, oil firms lose Rs 31.22 a litre on kerosene and Rs 404.64 per 14.2-kg LPG cylinder.

Sources said government had provided Rs 1,00,000 crore cash subsidy in 2012-13 when under-recoveries touched an all- time high of Rs 1,61,029 crore. In the preceding year, Rs 83,500 crore was given. Upstream firms had chipped in with Rs 60,000 crore in 2012-13 and Rs 55,000 crore in 2011-12.

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News Network
May 27,2020

Muzaffarpur, May 27: A toddler's vain attempt to wake up his dead mother from eternal sleep on a railway platform in Bihar's Muzaffarpur on Wednesday presented the most poignant picture of the massive migrant tragedy unfolding across several states.

A video tweeted by Sanjay Yadav, an aide to RJD leader Tejashwi Yadav, shows the child walking unsteadily up to his mother's body, tugging at the blanket placed over her, and when failing to wake her up, covering his own head with it.

As the mother still lay still, he wobbles away from her, announcements continuing in the background about the arrival and departure of trains that would bring in tens of thousands of people in a rush to get away from hunger and hardship they face in large cities that could sustain them no more.

"This small child doesn't know that the bedsheet with which he is playing is the shroud of his mother who has gone into eternal sleep. This mother died of hunger and thirst after being on a train for four days. Who is responsible for these deaths on trains? Shouldn't the opposition ask uncomfortable questions?" tweeted Yadav.

However, police had a different story to tell.

Ramakant Upadhyay, the Dy SP of the Government Railway Police in Muzaffarpur, said the incident occurred on May 25 when the migrant woman was on way to Muzaffarpur from Ahmedabad by a Shramik Special train.

He told reporters the woman, who was accompanied by her sister and brother-in-law, had died on the Madhubani bound train.

"My sister-in-law died suddenly on the train. We did not face any problem getting food or water," the officer said, quoting the deceased's brother-in-law who he did not name.

He said on getting information, poice brought down the body and sent it for postmortem.

Citing the brother-in-law of the deceased, Upadhyay said she was aged 35 years and was undergoing treatment for "some disease" for the last one year in Ahmedabad. "She was also mentally unstable," he said.

When persistently queried about the cause of death, he said,"Only doctors can tell".

A massive exodus of migrant workers is on in several parts of the country, unprecedented in magnitude since Partition.

The humanitarian crisis still unfolding on highways and railway platforms has shone light on disturbing tales of entire families walking hundreds of kilometres with little children on foot in a seemingly endless march to escape hunger.

People have been found travelling on trucks and in the hollow of concrete mixing plants, and in many cases, dying from hunger and exhaustion before reaching their destinations.

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Agencies
January 11,2020

New Delhi, Jan 11: Senior Congress leader P Chidambaram on Friday said that he has never seen innocents like the Indian people, who believe the claims made by the government on the implementation of its programmes. The former Union Minister, addressing a literary event, said, "I have never seen innocents like the Indian people. If something appears on print (and named two newspapers also), we believe it. We believe anything."

Claims like all villages having been electrified in the country and toilets built for 99 per cent of families in India were being believed, he said.

Similar was the case of the Ayushman Bharat scheme, (Pradhan Mantri Jan Arogya Yojana or PM-JAY is a flagship health care scheme of the Centre), he alleged.

Stating that his Delhi-based driver's father had to get a surgery done under the scheme, he said, however, it could not be performed.

"I asked him (car driver) if he had the Ayushman card and he showed a card and I told him to take it (to hospital). In hospital after hospital, they said they were not aware of anything like that (Ayushman scheme). But we believe that the Ayushman scheme has come to the whole of India," he said.

Further, he said "we believe that for any disease, treatment will be done (indicating the Ayushman scheme) without shelling out money. We are being innocents."

Many news items and data were contrary to the truth, he added.

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Agencies
February 11,2020

New Delhi, Feb 11: Votes between Hindus and Muslims were ''completely polarised'', said Congress party's Alka Lamba, as she trailed at Chandni Chowk assembly seat on Tuesday.

"I accept the result, but don't give up. Hindu-Muslim votes were completely polarised. The #Congress Party will now have to prepare for a new fight with new faces and a long struggle for the people of #Delhi. If you fight today, you will also win tomorrow," Ms. Lamba tweeted in Hindi.

As per the Election Commission (EC) website, Ms. Lamba is in third position with just 1,229 votes so far. AAP's Parlad Singh Sawhney is ahead with 23,281 votes followed by Suman Kumar Gupta of BJP.

Ms. Lamba, who had won from Chandni Chowk on an AAP ticket in the 2015 polls, was expelled from AAP last year after she joined Congress, citing differences with Delhi Chief Minister Arvind Kejriwal.

As per the EC official trends, AAP is maintaining a strong lead on 58 seats, while the BJP is far behind at 12. Congress has failed to open its account so far.

The counting of votes for 70 seats of the Delhi Assembly began at 8 am today amid tight security.

Delhi went to polls in a single-phase on February 8. AAP, BJP, Congress are the main political parties in the fray.

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