New Delhi: The Kirit Parikh Committee on fuel pricing yesterday recommended an immediate increase in diesel price by Rs.5 a litre to offset the loss incurred by state oil marketing companies (OMCs) in selling the fuel below cost.
The committee suggested that the balance loss should be met through a fixed subsidy on diesel of Rs6 per litre to the OMCs. The panel has also suggested increasing kerosene price by Rs4 a litre, and a cap on subsidised domestic LPG to be restricted for each household to six cylinders per year.
“The limit for subsidised cylinders should be reduced from the present 9 to 6 cylinders per annum to each household,” the report said. The panel was constituted to recommend a pricing methodology for diesel, domestic LPG and kerosene sale through the public distribution system.
The panel said that until diesel pricing was made market-determined, the existing pricing mechanism based on trade parity should continue. IANS
