M A I N   N E W S

Hike diesel rates by Rs 5, says govt panel
Sanjeev Sharma/TNS

New Delhi, October 30
The government-appointed Kirit Parikh panel has recommended that diesel prices should be immediately hiked by Rs 5 per litre and the quota of subsidised LPG cylinders reduced to 6 cylinders per household in a year from 9 at present.

In a report with far-reaching consequences, given the huge quantum of increases being suggested in fuel items, the panel has recommended Rs 4 per litre increase in kerosene and Rs 250 per cylinder hike in LPG rates.

The panel also recommended fixed subsidy of Rs 6 per litre on diesel while favouring deregulation of diesel price in a year's time, Parikh said after presenting the report to Petroleum Minister Veerappa Moily. The expert group was tasked to suggest a methodology for pricing of diesel and cooking fuel.

The government will now examine the report and consultations will be held on how to move forward with it between the Petroleum Ministry and Finance Ministry.