A government panel has on October 30 recommended an immediate rise of Rs 5 per litre of diesel or 9.5 per cent rise, along with other measures aimed at cutting the government’s huge oil subsidy bill.
The government had set up the Kirit Parikh Committee in May to advise the government on fuel pricing. The committee also suggested that capping the subsidy on diesel sales at Rs 6 a litre, Oil Minister S. Veerappa Moily said.
The panel also favours reduction of the quota of subsidised LPG to 6 cylinders per household in a year from 9 at present. The panel has recommended Rs 4 per litre increase in kerosene in line with per capita agriculture GDP and Rs 250 per cylinder hike in LPG rates, Parikh told reporters after presenting the report to Oil Minister Veerappa Moily.