Kirit Parikh committee suggests increase in prices of Diesel, Kerosene and LPG

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Kirit Parikh committee on Pricing Methodology for Diesel, Domestic LPG and PDS Kerosene has recommended a price increase of Rs 5 / litre in diesel, Rs 4/ litre in kerosene, and Rs 250 in LPG cylinder with immediate effect.

What are the key recommendations of Kirit Parikh panel?

The Panel recommended:

  • Number of subsidised LPG cylinders should be decreased from the present 9 to 6 cylinders per annum to each household.
  • Subsidy on diesel sales should be capped at Rs 6/litre.
  • Do away with the subsidy on diesel within one year, which could save the exchequer Rs 72000 crore in fuel subsidy.
  • Government should take measures to pass on the impact of rise in price of diesel to consumers, and move speedily towards making the price of diesel market-determined.
  • Continuation of existing pricing principles for controlled petroleum products.

At present, oil marketing firms sell diesel at a discount of Rs 10.52 per litre, kerosene at Rs 38.32 Rupees and LPG at Rs 532.86 rupees per cylinder.

Kirit Parikh Committee

Kirit Parikh panel was set up by the Ministry of Petroleum and Natural Gas in June 2013 assigning it with the task to advice on Pricing Methodology for Diesel, Domestic LPG and PDS Kerosene. The panel was chaired by Planning Commission member Dr. Kirit S. Parikh.

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Categories: India Current Affairs 2017Persons in News 2017

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