labels: Automotive, Economy - general
Diesel for big cars, bulk users to cost more news
13 September 2008

Mumbai: Under the yet to be implemented dual-pricing policy for diesel, the petroleum ministry is considering a imposing a 25-per cent cess on large diesel cars and bulk users like power plants.

The Indian Railways and state transport corporations will be exempt from the higher dual pricing, expected to take the pump price of diesel to Rs57 per litre, up from the current price of Rs34.80 a litre.

''It is under consideration right now and bulk users would be charged more if implemented,'' petroleum secretary R S Pandey said.

The decision follows a meeting of heads of public sector oil companies with petroleum minister Murli Deora last month in the aftermath of an 18 per cent growth in demand for diesel in April-July, with bulk of the growth coming from industrial users like power plants.

Oil PSUs had proposed that diesel for industries and big cars be sold at Rs57 per litre instead of the current price of Rs34.80 a litre.

Pandey did not say when the matter would be taken to the cabinet for approval, but if implemented, bulk/industrial users would be charged Rs22.20 more.

The rising demand for diesel may forces oil retailers to import around 4.14 million tonnes of diesel in 2008-09, of which 1.27 million tonnes have already been imported in April-July.

With increased use of diesel in the power generation and industrial sectors, oil companies have projected a combined loss of about Rs1,00,000 crore on subsidised sale of diesel this year. Differential pricing of diesel would reduce the revenue loss by Rs27,202 crore in 2008-09, sources said.

Demand from the power sector has grown by a whopping 152 per cent in the first quarter to 53,000 tonnes while fisheries and marine sector has seen a near-40 per cent growth.


 search domain-b
  go
 
Diesel for big cars, bulk users to cost more