Creating Turmoil In Indian Economy Narendra Modi Has Deregulated Diesel Prices By Linking It To market
And Approved New Domestic Gas Pricing Policy.
Narendra Modi ,With This Gas Pricing Policy, Has Snatched Major Issue From The “AAP” Party Who has been fighting for this cause from its beginning. Diesel Linking Of Diesel With Market would consumers friendly.
It May Be A Set Back For Ambani,s Reliance
For Delhi Rs 3.37 Of Diesel Prices Will Be Reduced From Tonight
The Union Cabinet Committee of Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, today approved the issues relating to the under-recovery on sale of diesel and its present status. Instructions have been issued today i.e. on 18th October 2014 to make the price of Diesel market determined with effect from midnight of 18th-19th October 2014. The prices of Diesel will be market determined at both Retail and Refinery Gate level for all consumers thereafter.
Based on an earlier decision of the Cabinet Committee on Political Affairs (CCPA) dated 17th January 2013, instructions were issued to the Public Sector Oil Marketing Companies (OMCs) allowing them to increase the retail selling price of Diesel in the range of 40 paisa to 50 paisa per litre per month (excluding VAT as applicable in different States/Union Territories) till further orders.
Diesel prices will henceforth be market determined. This will facilitate greater competition in the Auto Fuels Retail segment and enhanced efficiency in service delivery of the oil companies. This is expected to benefit consumers due to greater competition among oil companies and more choices.
The Cabinet Committee of Economic Affairs,also approved the new domestic gas pricing policy.
The salient features of the new Gas Pricing Policy are follows:
(i) Gas prices will be approximately 75% less as compared to the price arrived at using Rangarajan formula.
(ii) Approximately 80% of the additional revenue due to revision in gas price will go to the Government companies.
(iii) Government will get additional revenue of approximately Rs. 3800 crore per annum on account of higher royalty, higher profit petroleum and higher taxes.