Kirit Parikh Panel Recommended Hike in Diesel, Kerosene, LPG Prices

Kirit Parikh Panel on advising Pricing Methodology for Diesel, Domestic LPG and PDS Kerosene submitted report to the Petroleum and Natural Gas Ministry on 30 October 2013.
The panel in its report recommended a price increase of 5 Rupees per litre in diesel, 4 Rupees per litre in kerosene, and 250 Rupees in LPG cylinder with immediate effect.

Kirit Parikh Panel Recommendations:

 •The Panel recommended that the subsidised LPG cylinders be reduced from the present nine to six cylinders per annum to each household.

•Panel suggested capping the subsidy on diesel sales at 6 rupees a litre.

•Panel called for the elimination of subsidy on diesel within one year, which could save the exchequer 72000 crore Rupees in fuel subsidy.

•The panel has stated that the Government should take steps to pass on the impact of rise in price of diesel to consumers, and move rapidly towards making the price of diesel market-determined.

•The panel favoured continuation of existing pricing principles for controlled petroleum products.

Oil firms currently sell diesel at a discount of 10.52 Rupees per litre, kerosene at 38.32 Rupees and LPG at 532.86 rupees per cylinder.