New Delhi, Jan 17: Following is the press release issued by the Government of India on the hike in cap on non-subsidized LPG cylinders, and the hike in price of diesel.
The press release says: " It has been decided to increase the entitlement of subsidised domestic LPG cylinders till March 2013 from 3 to 5 cylinders. However, no refund shall be admissible on any LPG domestic cylinder already supplied at non subsidized price during the period 14.09.2012 till date. For FY 2013-14, the entitlement of subsidized domestic LPG cylinder shall increase from 6 to 9.
Indian Oil Corporation Ltd. has also decided the following changes in the MS, HSD prices:
1. MS price shall stand decreased by 0.25 paise per litre (excluding VAT) w.e.f. midnight of 17-18, January, 2013.
2. HSD price shall stand increased by 0.45 paise per litre litre (excluding VAT) w.e.f. midnight of 17-18, January, 2013.
3. The price of domestic non-subsidized cylinders over and above five subsidized cylinders for FY 2012-13 shall stand increased by Rs.46.50 per cylinder.
4. For bulk consumers of HSD taking supplies directly from the installations of the OMCs, henceforth, no subsidy shall be available and the price shall be non-subsidized market determined price. Accordingly, the price of diesel for bulk consumers taking supplies directly from installations of IndianOil shall stand increased by Rs.9.25 per litre (excluding VAT) w.e.f. midnight of 17-18, January, 2013.
"As a result of the above, the under recoveries on HSD both bulk and retail shall decrease by approx. Rs.3400 crore till March 2013. Based on the current prices and volumes, the decrease in the under-recoveries on annual basis on HSD shall be approx. Rs.15000 crore for OMCs as a whole. The increase in under-recovery on account of increase in subsidized LPG cylinder shall be Rs.5200 crore for OMCs as a whole till March 2013. Based on account of volume and price, the increase in under-recoveries on account of LPG cylinder on annual basis shall be Rs.10000 crore for OMCs as a whole.
"The decrease in the under-recoveries on account of increase in price of domestic non-subsidized LPG is estimated to be insignificant as the no. of subsided cylinders has been increased to five till March 2013."