Diesel prices should be hiked before the election results are announced on May 16, so that it lays the course for more hikes by the next government to wipe off losses on the fuel's sales, said Kirit Parikh, who headed a panel on diesel prices.
"...my feeling is that the government should really increase the price between 12 and 16th of May. They should get back on track so that the next government continues to remain on that track. Because once you're off the track, one doesn't know how long the next government will take to get back on the track," said Dr Parikh, who is the chairman of Integrated Research and Action for Development. (Watch: Video)
Based on recommendations of a Dr Parikh-led committee, the government in January 2013 had decided to hike diesel prices by 40-50 paise per month till the entire losses on sale of the fuel are wiped out, and prices made market determined. Diesel prices have risen by a cumulative Rs 8.33 a litre in 14 instalments since January 2013.
However, in April, oil companies did not hike diesel prices on the grounds that the loss on sales of the fuel has fallen to less than Rs 6 a litre "which is the interim subsidy cap recommended by the expert group of Kirit Parikh."
Mr Parikh said it was wrong on the Election Commission's part to allow the pause in hike and a violation of its own code of conduct. "It's an existing policy and changing an existing policy is also a new policy...which actually benefits the diesel users," he said.
Mr Parikh also clarified, that his panel's report never recommended the Rs 6 subsidy to be there "forever".
"The suggestion we had made is that just fix a diesel subsidy per litre based with Rs 6 and free the diesel price and as and when the opportunity arises reduce the diesel subsidy that's at Rs 6 and gradually whittle it down and it was not as if that once it's at Rs 6 the government doesn't have to do anything," he said.
The loss on sale of diesel climbed to Rs 6.80 even as state-owned oil companies, on Thursday for the second time skipped the monthly price increase on the government's direction.
State-owned firms Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp are losing Rs 6.80 on every litre of diesel sold, up from Rs 5.49 a litre last month as the rupee depreciated against the dollar and international oil prices firmed up, an official statement issued by the oil firms said on Thursday.
RESULT
Diesel Prices Should Be Hiked Before May 16: Kirit Parikh; Dr. Kirit Parikh: Gas prices need to be hiked, hope diesel price hikes continue. 5:01.
Petrol price hiked by Rs 2.35 per litre, diesel by 50 ...
Diesel Prices Should Be Hiked Before May 16: Kirit Parikh. Loss on diesel sales climbs to Rs 6.80 a litre. Petrol price cut by 70 paise per litre, diesel
Brace For Higher Diesel Prices, Panel Recommends Steep Hike
"Diesel prices should be hiked before the election results are announced on May 16, said Kirit Parikh, who headed a panel on diesel prices.
Times of India News, Latest India News from Times of India ...
Diesel Prices Should Be Hiked Before May 16: Google slashes cloud computing prices to compete with Diesel Prices Should Be Hiked Before May 16: Kirit Parikh;
Economy: Latest News, Photos, Videos on Economy - NDTV.COM
Government should increase diesel price before election results: Kirit Parikh Diesel Prices Should Be Hiked Before May 16: Kirit Parikh. Friday May 2, 2014
IBN Live News, Latest India News from IBN Live, India News ...
Diesel Prices Should Be Hiked Before May 16: Teams may pay price for quieter F1, Diesel Prices Should Be Hiked Before May 16: Kirit Parikh;
Petrol, diesel prices up after hike in dealers' commission ...
Diesel Prices Should Be Hiked Before May 16: Kirit Parikh; Petrol price cut by 70 paise per litre, diesel unchanged; Petrol price may be cut by over Rs 1
Polls may dampen jewellery demand in India on Akshaya ...
Diesel Prices Should Be Hiked Before May 16: Kirit Parikh; the prices are steady with no indications of moving Gold Futures Fall 0.16 Per Cent to Rs 28,535 on
NDTV News - Top Stories - FeedBurner
Raghuram Rajan a Good Economist, Should Continue as RBI Chief: Yashwant Sinha. Attacking Samajwadi Party (SP) supremo Mulayam Singh Yadav,
Diesel price must be hiked by Rs 4 immediately: Kirit ...
May 01, 2014 Market holiday: Diesel price must be hiked by Rs 4 Kirit Parikh Committee recommended that the existing trade parity pricing be continued until
