Rs. 5 per litre hike in Diesel price, cap of 6 on LPG cylinders in year
On 14 September, the Center government hiked diesel prices by Rs 5.62 per litre excluding value added tax (VAT) and limited the number of subsidized LPG cylinders to six per year to each consumer. The Cabinet Committee on Political Affairs (CCPA) took the decision in a meeting under the chairmanship of Prime Minister Manmohan Singh.
The Committee left kerosene rates untouched and spared an increase in petrol price by cutting excise duty by Rs 5.30 (rpt) Rs 5.30 per litre. The Trinamul Congress and Samajwadi Party and opposition alike made strong objections on the hike and demanded a total rollback. This hike is to fetch an additional Rs 20,300 crore. The action is expected to reduce oil-marketing companies under recoveries by Rs 20,300 crore.