Government Talks of Withdrawing Subsidised Diesel

04 August 2011 - Which Way to Pay

Email Article Print Article

Government Talks of Withdrawing Subsidised Diesel

A Government announcement in New Delhi today indicates that car owners may lose the subsidy of Rs 6.08 per litre on diesel. This news comes as figures show that passenger cars now consume about 15% of the country’s total diesel consumption.

India imports about 75% of its total crude oil requirement. The Finance Minister Pranab Mukherjeesaid out of total consumption of diesel, 10% is used by industry, 6% by railways, 12% by the agriculture sector and 8% is used for power generation. The most diesel consumption without doubt occurs on India’s roads with 15% by car owners as well as buses and trucks consuming 12% and 37% respectively.

Mukherjee said in response to a debate on price rise in the LokSabha:
"...we can accept your (Opposition) suggestion and try to work out what mechanism could be found out so that this section (diesel car owners) are not subsidised,"

The price of petrol is linked to market rates whereas the government compensates oil marketing companies for losses on account of the sale of diesel, kerosene and cooking gas (LPG) by means of subsidies and oil bonds.

Evidence of the Government’s need to keep finances under wraps came in June when the custom and excise duties on petroleum products were slashed. This aimed to mitigate a consumer price hit but resulted in a revenuehit of Rs 49,000 core per annum. However, being aware of the expense of living associated with fuel, the change in Government direction to free the price of diesel and LPG will not affect the subsidy on kerosene which is most commonly used by the poor.



Compare Foreign Exchange and Currency >>

Compare Loan and Debt Products >>

Compare Cards Products >>

Compare Money Products >>

Compare Insurance Products >>

When the planning starts for that special day in everyone's lives , There is always the worry and stress of how much strain it is going to put on your financial situation . Marriage loans are helping lots of people to ease this stress.
08 August 2015
Which Way To Pay
Marriage loans have been introduced to help prepare for the expense you will incur when celebration the most special day of everyone's life.
As everyone wants that big day to be perfect , there is also a hefty cost that comes with it .
14 May 2015
Which Way To Pay
Marriage isn't a cheap affair that's why Marriage loans have proven so popular across India.
Everyone want the best education , But financially this can be a worry
07 October 2014
Which Way To Pay
Getting the best education is the main priority in most people's lifetime.