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Assocham for 20% hike in petrol products
New Delhi, January
18, 2008
Industry body Assocham suggested at least a 20 % hike in
prices of petrol, diesel and kerosene and withdrawal of
subsidies to reduce the mounting losses being incurred by oil
marketing companies.
Assocham president Venugopal N Dhoot said it is in the
interest of oil marketing companies that the government
introduced a minimum 20% hike in petroleum products like
petrol, diesel and kerosene.
He said prices of each LPG cylinder should be raised by up to
Rs 50.
Dhoot also called for withdrawal of subsidies on petroleum
products, saying the continuance of the practice could lead to
a further rise in losses of oil marketing companies beyond the
estimated Rs 70,000 crore for the current fiscal.
"Further delay in hike for petroleum products for ulterior
political gains are completely unwarranted. On the contrary,
prudence demands that the government hike the prices of
petrol, diesel, LPG, kerosene and convince the masses to bear
its burden as crude prices internationally are not within the
control of any particular government," Assocham said.
Under recoveries to marketing companies for petrol, diesel,
kerosene and LPG have reached Rs 9.20, Rs 10.94, Rs 19.89 per
litre and Rs 331.34 per cylinder respectively, it said.
"The government should no longer keep petroleum prices at
artificial levels as it would increase consumption of
petroleum products and reduce energy conservation and
efficiency efforts for which various state sponsored campaign
have been going on quite aggressively," it said.
Dhoot said the finance ministry should rationalise excise duty
and taxes on transportation of petroleum products.
In Delhi alone, tax on petrol works out to the extent of 50 %
and nearly 30 % on diesel. Estimates reveal that in 2007,
global crude oil prices rose by over 60 per cent, while those
of diesel and petrol by about 58 % and 55 % respectively.
Still, their retail prices were kept almost absolutely
untouched, the industry body said.
Between march 2002 to December 2007, LPG and kerosene became
dearer globally by about 350 % and 340 % respectively. While
LPG prices went up by nearly 16 % during the period, the
retail price of kerosene was hardly raised, the chamber said.
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