Fuel price reforms to continue: Moily

December 14, 2013

MoilyNew Delhi, Dec 14: Oil minister M Veerappa Moily on Friday allayed fears of an oil shock by way of hefty increase in diesel and cooking gas prices but said fuel pricing and other reforms in the oil sector would continue irrespective of the Congress's drubbing in the recent assembly polls.

A panel, under former Planning Commission member Kirit Parikh, has suggested raising prices of diesel by Rs 5 a litre and cooking gas by Rs 250 per cylinder and lower the annual cap on subsidized refills to six from nine as measures to cut fuel subsidy.

"Economically that is the right decision but how practical is it, how we can apply (it), which is something we have to take a view on. If the country has to go forward, reform is a must. But, the question is whether we can implement what has been recommended because we have to balance between the consumer (interest) and government revenue. A balanced view will be taken on the report," Moily said.

Moily said the 50 paise a litre hike would continue irrespective of the drubbing that Congress faced in the assembly elections. "Election results will not drive the UPA government or Congress to panic. Congress or UPA will not act in panic. These decisions have been taken in national interest and we will continue to act in best interest of the country and its people."

Without the phased adjustment in rates being effected, the country would not have money to buy raw material (crude oil) and there would be shortages of fuel across the country, he said.

Present pump price of diesel is Rs 9 less than production cost. It would take more that one-and-a-half years to wipe out this gap under the present policy of raising the price by 50 paise a litre every month. The gap has varied from Rs 14.5 per litre in mid-September to as low as Rs 3.5 in May.

The total under-recoveries, or revenue loss, on diesel and cooking fuel (LPG and kerosene) could be around Rs 147,500 crore, which could lead to the government exceeding the budgeted Rs 65,000 crore for total fuel subsidy burden for 2013-14.

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News Network
March 26,2020

Mar 26: As Kashmir reported its first COVID-19 death on Thursday, Islamic scholars urged people to follow the Ministry of Home Affairs guidelines on funeral and burial of those who die due to coronavirus pandemic.

“Medical science can’t be ignored and whatever directions there are in the (MHA) guidelines should be followed. As far as the funeral of the person, only family members should participate in the funeral and burial after wearing the protection kits,” the scholars said.

The MHA has stressed that there should be no bathing, kissing, hugging and reciting of verses while the body should be transported in a secured bag. Health experts have stressed that the grave for the person should be dug eight feet deep instead of normal six feet.

“The body of the person should be transported in a secured bag and the vehicle in which he is transported has to be decontaminated by the trained staff who should be wearing N-95 masks and protection equipment,” read the MHA guidelines.

Kashmir witnessed the first death of a COVID-19 patient from uptown city Hyderpora, who had a travel history of outside J&K as he was part of a ‘Tableegi Jamaat’.

Dr Naveed, Head of Department, at Chest Diseases Hospital Srinagar, said that no one from the family should go closer to the body and if someone from the family wants to see the face, he/she has to wear a complete protective gear.

“Burial bath is not recommended for the body. Grave for him should be dug eight feet deep instead of normal six feet,” he said.

As far as funeral prayers, he said, those intending to offer funeral should wear protective gear and maintain sufficient distance between the body and people.

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News Network
July 17,2020

Thiruvananthapuram, Jul 17: A gunman posted at the United Arab Emirates (UAE) Consulate in Thiruvananthapuram allegedly attempted suicide on Friday, the police said.

"A gunman who was working at the United Arab Emirates (UAE) Consulate in Thiruvananthapuram allegedly attempted to commit suicide today. He is currently admitted to a hospital. 

The police were searching for him after his relatives had filed a missing complaint on Thursday night. A case has been registered and a probe is underway," said Police.

The person is identified as Jayagosh. He is attached to the police Armed Reserve (AR) camp and was reported missing since last night. Later, his relatives had filed a missing complaint with the police.

Jayagosh was later found lying in a pool of blood near his house in Akkulam and was taken to the hospital.

A police investigation is underway and more details are awaited.

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Agencies
June 21,2020

New Delhi, June 21: Diesel prices rise to record high after 60 paise hike in rates, petrol up 35 paise; rates up by Rs 8.88 and Rs 7.97 in 15 days.

Petrol price in Delhi was hiked to Rs 79.23 per litre from Rs 78.88, while diesel rates were increased to Rs 78.27 a litre from Rs 77.67, according to a price notification of state oil marketing companies. 

In Bengaluru, petrol will be costlier by 37 paise at Rs 81.81 per litre, while diesel will cost 57 paise more per litre at Rs 74.43.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

The 15th daily increase in rates since oil companies on June 7 restarted revising prices in line with costs after ending an 82-day hiatus in rate revision, has taken diesel prices to a new high. The petrol price too is at a two-year high.

Over 63 per cent of the retail selling price of diesel is taxes. Out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT. 

Petrol in Mumbai costs Rs 86.04 per litre and diesel is priced at Rs 76.69.

Prior to the current rally, the peak diesel rates had touched was on October 16, 2018 when prices had climbed to Rs 75.69 per litre in Delhi. The highest-ever petrol price was on October 4, 2018 when rates soared to Rs 84 a litre in Delhi.

When rates had peaked in October 2018, the government had cut excise duty on petrol and diesel by Rs 1.50 per litre each. State-owned oil companies were asked to absorb another Re 1 a litre to help cut retail rates by Rs 2.50 a litre.

Oil companies had quickly recouped the Re 1 and the government in July 2019 raised excise duty by Rs 2 a litre.

The government on March 14 hiked excise duty on petrol and diesel by Rs 3 per litre each and then again on May 5 by a record Rs 10 per litre in case of petrol and Rs 13 on diesel. The two hikes gave the government Rs 2 lakh crore in additional tax revenues.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), instead of passing on the excise duty hikes to customers, adjusted them against the fall in the retail rates that was warranted because of a decline in international oil prices to two-decade lows.

International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.

In 15 days of hike, petrol price has gone up by Rs 7.97 per litre and diesel by Rs 8.88 a litre.

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