As of now, the petroleum subsidy is applicable only for liquefied petroleum gas (LPG or cooking gas) and kerosene. Experts said with global energy scenario changing — the Opec deciding to extend the production-cut deal by a year by keeping 1.8 million barrels per day off the market in 2018 — international fuel prices are set to go up.
Raising concerns, the price of non-subsidised LPG had risen 59 per cent to Rs 742 a cylinder in November; it rose 16 per cent for a subsidised cylinder, to Rs 496. The rises were necessitated due to crude oil prices going well beyond the budgeted $55 a barrel for 2017-18.
“For the first six months of the financial year (April-September), cumulative subsidy claims on LPG and kerosene submitted to the petroleum ministry stood at Rs 9,079 crore. This is set to rise further with the recent increase,” said a second official. The LPG subsidy, earlier expected at Rs 13,000 crore, is now set to be around Rs 15,000 crore.
A dollar increase in crude prices is estimated to raise the annual import bill by roughly Rs 10,000 crore.
In October, the government had cut the excise duty on petrol and diesel by Rs 2 a litre to tame rising inflation and shield consumers from the rising price of these automobile fuels. It meant a loss in revenue of Rs 13,000 crore for the rest of this financial year.
On Sunday, the price of petrol in Delhi was seen at Rs 69.15 a litre, while that of diesel was at Rs 58.37. Interestingly, in Mumbai, this was seen at Rs 76.61 and Rs 61.21 a litre respectively.
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On December 10, the price of petrol in Delhi was seen at Rs 69.15 a litre, while that of diesel was at Rs 58.37
In Mumbai, this was seen at Rs 76.61 and Rs 61.21 a litre, respectively