Showing posts with label Petrol Pumps. Show all posts

Thursday, September 12, 2013

Finally! Petrol Prices May Go Down By Rs.1-1.50

Petrol prices may be cut by as much as Rs. 1-1.50 per litre next week on falling international oil rates and appreciating rupee but a one-time hike in diesel and possibly LPG rates is still on the cards.

Oil secretary Vivek Rae said the issue of a one-time hike in diesel and cooking fuel rates "is a political and economic challenge" from which "we cannot run away."

"Some burden has to be borne by the consuming population. That is the challenge the government faces. It is a political challenge, it is an economic challenge, it is a challenge we cannot run away from," he said at a conference organised by Delhi Productivity Council here.

Rae said subsidy burden has reached unsustainable levels which cannot be financed by government budget and oil companies.

Oil subsidy, he said, had risen by Rs. 20,000 crore in last two months alone on depreciating rupee that made imports costlier.

With limited financial resources, the government cannot run the risk of inflating the fiscal deficit further as it would lead to further depreciation in the rupee and downgrade in credit ratings, he said.

Later talking to reporters, he said a decision on raising rates beyond the 50-paise-a-litre increases being effected currently would be taken after considering all options.

"Finance minister (P Chidambaram) himself has said that the decision has to be considered very carefully. So I guess all aspects will be taken into consideration before deciding what to do next. There are many options available," he said.

Officials said the softening in international oil rates and appreciating rupee will translate into a cut in petrol price on September 15/16.

Rae also said crude prices have come down after reduction in tension in Syria and rupee has also stabilised.

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- Unknown Updated at: Thursday, September 12, 2013

Monday, September 2, 2013

PM's Office Rejects 8PM Closing For Petrol Pumps, BJP unleashes

New Delhi: The Prime Minister's Office, sources say, has firmly rejected a suggestion to close petrol pumps at 8 pm, a proposal that was under consideration according to Oil Minister Veerappa Moily.

On Sunday, he had said an 8 pm curfew was among an omnibus of austerity measures that was being studied. After scathing criticism from the opposition,

and a lack of support within the government, Mr Moily today the proposal was not the government's idea, but was offered "by the public and others."

"If the opposition has any brilliant ideas, let them share them," he charged, in response to the BJP's derision.

The Prime Minister has asked Mr Moily to cut down the spend on oil imports by 25 billion dollars or Rs. 1,65, 000 crore. The minister said that a six-week austerity drive, of which the constituents are being finalized, will debut on September 16.

The plan aims at cutting the demand for fuel by 3 per cent at a time when global crude oil prices are surging and the rupee is mining record lows; it has fallen 20% since May
Mr Moily has pointed out in a letter to the PM that unless corrective steps are taken, the government will face losses of Rs. 1.8 lakh crore on subsidized fuel.

Every time, the value of rupee to a dollar falls by a rupee, the import bill goes up by 7, 900 crore. For every litre of diesel that's sold, oil companies take a hit of Rs. 10.

For kerosene, they lose a whopping Rs. 33 per litre.

Mr Moily has also written to the Prime Minister suggesting that India could save $8.5 billion if its increases oil imports from Iran, which is able to accept payment in rupees. The US and the European Union have imposed sanctions on Iran over its nuclear programme, which has reduced its oil exports significantly.

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- Unknown Updated at: Monday, September 02, 2013

Sunday, September 1, 2013

Moily planning to stop night operations in petrol pumps, to check fuel consumption

Oil minister M Veerappa Moily on Sunday said his ministry was planning to prohibit fuels pumps from staying open at night as part of the government’s plan to check fuel consumption in the country.

Moily, who recently wrote to the Prime Minister urging steps to shave off the massive spends on importing oil, has said that his ministry will mount an austerity drive to taper fuel consumption,

which is seen as the primary driver of the country’s current account deficit.

"There are various options that have been floated. Shutting petrol pumps during night is one of them. But we have not decided. It is just a proposal," Moily told PTI from Bangalore.

The oil ministry plans to launch a fuel conservation drive from September 16 to cut fuel demand by 3 per cent and save an estimated Rs. 16,000 crore or USD 2.5 billion in forex outgo.

Reacting sharply, BJP spokesperson Shahnawaz Hussain said: "What is petrol pump? Government will close the country... Won't the people fill their car fuel tanks in the morning? This is a strange move by Moily".

If the Manmohan Singh government has run out of ideas to tackle the economic mess, it can take suggestions from the BJP, he said.

Oil secretary Vivek Rae,

however, said there was no plan before the ministry to order petrol pumps in cities to remain shut from 8 pm to 8 am yet.

Moily had also written a detailed note to the Prime Minister Manmohan Singh on shaving off upto $20 billion out of the $144.293 billion oil import bill of 2012-13.

The August 30 note does not talk of shutting petrol pumps in the night but details conservation campaign as well as raising oil imports from Iran to cut import bill.

Moily said many austerity measures were in the pipeline.

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