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After an increase of Rs 50 in LPG gas cylinders by the government on Wednesday, a sales tax cut of Rs 40 on the same is introduced by the Delhi government  to relief the citizens. In this way the Delhi people got the net price hike to Rs 10 only.

“The increase in LPG rate will be of Rs ten instead of Rs 50 in Delhi. The domestic cylinder which is priced at Rs 294.70 paise will now be costing rs 304.70 paise and not Rs 340.30 paise,” Delhi Chief Minister Sheila Dikshit told reporters here.

The move is in wake to relief the middle class people who are already burdened with increasing rate of inflation. The decision came after the cabinet meeting where it was decided to cut down the vat from existing 4 per cent to zero, while providing a subsidy of around Rs 26 per cylinder.

The subsidy would have a burden of Rs 165 crore on the state exchequer.

“There would be no rise in the fare of the Metro and the DTC buses, which run on electricity and CNG respectively.” she said while speaking at a press conference.

Sales tax cut is demanded by Congress president Sonia Gandhi and BJP since the increase in petroleum rates.

Tags: Delhi, DTC, Gas, LPG, Petrol, Price hike

Last day Indian Government has increased the price of LPG cylinders along with a hike in petrol and diesel too. Later on PM MM Singh addressed the country and give an advice to save the energy for our next generation.

It is the need of the time, that we should save the consumption of LPG, short name of Liquid Petroleum Gas, so that we can be able to get rid of this price hike. Especially house wifes from India are more worried about there budget, so please consider doing these 10 things to avoid the price hike affect your life style.

1> Prepare Yourself before Cooking: Prepare all the material and raw items before going to burn the LPG. This will save your time while cooking.

2> Use Pressure Cooker: Try to use Pressure Cooker, this will consume less time and energy.

3> Use Covered Vessel: Try to cover each vessel while cooking, this way your food item will prepare earlier compared to the open vessel.

4> Avoid Attending Phone Calls while Cooking: Avoid long chat on the phone calls during you were cooking. This way you can concentrate more on cooking rather than wasting your LPG.

5> Use Proper Vessels for Burners: Use proper size vessels for each burner. This means that use small vessel in small burner.

6> Try to put burner in slow mode: Once the vessel equipped with complete heat, it does not require the same amount of heat. So you can make the burner at lowest position once the vessel is completely heated.

7> Don’t Waste LPG: See whether your burner fuel is going out from the vessel, it is wasting your precious LPG. Turn burner so that flame will cover the vessel only.

8> Avoid Re-heating the Food: Re-heating the food will decrease the quality of the food too and waste your LPG too. So avoid doing this.

9> Use Sufficient water in Food: Don’t put so much water in the food, since consuming that water will take more time and energy.

10> The last but the least is always remember to switch off the regulator every time after you finished the cooking. This is very much required from the safety point of view too.

So I think these 10 steps can help us to reduce the cost of the LPG in our daily life.

Tags: LPG, LPG Cylinders, Price hike, Save Gas

The government finally announced on Wednesday a significant hike of Rs 5 in petrol prices and Rs 3 in diesel price to decrease the pressure on the oil companies facing losses for a long time due to increase in international fuel rate which have touched levels as high as USD 135 per barrel. LPG gas cylinder rates are also gone up by Rs 50. There is no hike in Kerosene prices.

The huge subsidy loss faced by the public sector oil companies has led the government to impose the hike. State-run Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum were together projected to lose Rs 2,46,600 crore on sale of petrol, diesel, domestic LPG and PDS kerosene in 2008-09 in absence of any price hike or duty cuts. Earlier in the day, the Cabinet Committee on Parliamentary Affairs had approved the hike in fuel prices.

Petroleum Minister Murli Deora has also proposed double price for extra cooking gas cylinders. He has also proposed a new distribution scheme for LPG cylinders. Only 8 cylinders will be allowed at the current rates. All extra cylinders will cost twice the amount.

After 10 days of debate over the price increase, the cabinet also agreed to cut the import duty on crude oil to support refining and retailing firms like Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.

It is the second hike in the fuel rates in this year. On February 14, 2008 the price of petrol were hiked by Rs 2 and that of diesel by Re 1 a litre.

Prime Minister Manmohan Singh has already warned on Monday that government is not in a position to fully insulate the consumer from the impact of rising oil prices. He will address the nation at 8:30 pm on Wednesday night to explain the reason for the hike in fuel prices.

People are very upset with the announcement. They are protesting the hike. Public came out at roads and shouts slogan against the decision.

Opposition parties which are already protesting the hike are also protesting the decision. Unhappy at the hike, Left has said the decision as ‘Suicidal Move’. CPI announced a bandh in Kolkata against the hike.

Price of Petrol, currently 45.52 a litre in Delhi, will be now Rs 50.52/Lt, while diesel, which retails at 31.76 rupees, will cost Rs 34.76/Lt.

Tags: Diesel, Fuel Crisis, Fuel Price, Increament in Prices, LPG, Petrol, Price hike

When increasing price of crude in the international market is exerting a pressure over the Indian government to raise the fuel price, Prime Minister Manmohan Singh on Monday said that government is not in a position to fully insulate the consumer from the impact of rising oil prices.

On one side when the political parties including the Left are opposing hike in fuel prices, Prime Minister warned that the government could insulate poor people “up to a point” and economic pricing of oil was essential to sustain growth.

“We cannot allow the subsidy bill to raise any further.” said Singh addressing the Assocham’s annual meeting in New Delhi.

Prime Minister, however, ensured that the Indian economy will grow at 8 per cent and above despite of global slowdown. India has maintained the economic growth of 9 per cent and above for the last three years.

Fuel crisis is a cause of concern in the country as well as the world now-a-days. Despite the crude oil prices crossing the range of 127 dollars a barrel in the market and causing huge losses to the state-owned oil marketing firms, Indian government has not been able to pass on the burden due to lack of political consensus.

There are differences within the government also as to how to resolve the crisis. Finance Ministry is opposed to duty cuts sought by the Petroleum Ministry as also the Left parties.

Due to these differences the fuel hike decision is delayed day after day. According to the current reports the government has said that the decision is expected to come in this week.

Tags: Essential Commodities, Fuel Price, LPG, MM Singh, PM, Price, Price hike

The Indian Oil Corporation (IOC) will soon launch lightweight LPG cylinders made of fiber for domestic consumption, by November 2008 to resolve the domestic LPG cylinders crisis. The cylinders which will be available in different colors will be easier to handle as it will be lighter than conventional one.

The IOC will start distributing the fiber-made cylinders in three Indian cities, Bangalore, Hyderabad and Chennai. It will be available on non-subsidized rates and will be test marketed in Bangalore and Hyderabad first. The cylinder will be available off the shelf and will be serviced at consumers’ desired time. The conventional household cylinders have several restrictions, which this will be free of.

It is also viewed as being suitable for households with modular kitchens. With weight around 16 kg, inclusive of 10.5 kg of the fuel, it will have a transparent panel for users to track the level of the content.

It will be non-subsidized cylinder meant only for a classified market. The cost however will be similar to international LPG prices. It will almost be at par with the current 19 kg and higher capacity cylinders for commercial uses. Presently, the cost of commercial LPG is rupees 58/kg. The cost of subsidized product for domestic use is, however, rupees 20/kg.

The company will announce a global tender for the import of two lakh fiber-made cylinders. The IOC itself will use nearly one lakh cylinders, the other one lakh will be distributed to other oil companies like Bharat Petroleum Corporation Limited (BPCL).

Tags: Cylinder, Gas, Indian Oil Corporation, IOC, LPG

Due to the rising crude oil price in international market, a decision to hike the fuel prices in India may be taken tomorrow. The Cabinet headed by Prime Minister Manmohan Singh may meet on Friday to consider raising petrol and diesel prices.

Increasing crude price left the oil firms under pressure. With Indian Oil, Hindustan Petroleum and Bharat Petroleum projected to lose Rs 200,000 crore (Rs 2,000 billion) in revenues on sale of petrol, diesel, domestic LPG and kerosene below import cost, industry sources said a hike in the range of Rs 2 to 5 per litre appears on the cards. International crude prices reached an untouched height of $135 a barrel.

The three firms are currently losing Rs 450 crore (Rs 4.50 billion) in revenues on fuel sales every day. Petrol is being sold at a loss of Rs 16.34 a litre, diesel at Rs 23.49 per litre, LPG at Rs 305.90 per cylinder loss and kerosene at a discount of Rs 28.72 per litre. It will bailout state run firms that have been reeling under unprecedented high crude prices.

The three firms are faced with a huge liquidity crunch and are borrowing Rs 3,500 crore (Rs 35 billion) a month to meet day-to-day expenditure. Borrowings of the three firms have reached Rs 65,000 crore (Rs 650 billion).

Asked about the tomorrow meet Petroleum Minister Murli Deora neither denied nor confirmed Cabinet being scheduled for Friday.

“We are discussing all possible measures to help and protect our public sector oil companies . . . some remedial measures need to be taken (urgently),” he told reporters.

“I cannot rule in or rule out anything at this stage,” Deora said when asked if petrol and diesel prices hike was an option under consideration.

“We are concerned at the financial health of the PSUs.” he said.

Despite of the cost of raw material (crude oil) doubling to over $135 a barrel, government has not made any considerable hike in fuel prices which leads a revenue loss of Rs 200,000 crore to the three firms at the end of the current year. Last year, the revenue loss was Rs 77,304.50 crore (Rs 773.45 billion).

Tags: Bharat Petroleum, Diesel, Hindustan Petroleum, India, Indian Oil, LPG, Manmohan Singh, Oil Prices, PM

Oil companies of India has decided to finish the subsidies going on in LPG cylinders in India. In a recent movement they have decided to not provide any new connections.

Right now Government is giving around 300 Rs. subsidy on each LPG cylinder and if it has been removed then it will go out from the reach of the common people in India.

Right now cylinder is costing around 300-400 Rs. and after the removal of subsidy it can cross the 600 Rs. mark. This way middle class families will not be able to see the face of the LPG cylinder.

PM office and UPA Govt. has to decide yet on this topic and it is not sure whether they will accept it since it is the year of election.

Tags: LPG, LPG Cylinders, PM, Rising Price, Subsidy, UPA