Diesel, Cooking Gas Price to Soar Again!

November 07 10:48 2013

gas ratesNovember 7 – Inflation has made survival of human beings literally tougher and hard to bear. More to the point, no respite from this is even visible in the coming period. As per the recent reports, government is planning to increase cost of cooking gas by Rs 10 per cylinder. Besides, so to put pressure on the pockets of common mob, diesel is even not a step back. Its price may increase by Rs 1 per litre each month.

Despite the fact that the government is not in support of putting into practice the heavy fuel cost augmentations suggested by Kirti Parikh expert committee, it wishes for decreasing the fuel subsidy bill, and might stick to monthly cost augmentations in order to push this through in a more phased out way.

Pressure is completely on the government only as it might have to face backlash of the voters as soon as LPG cost increases up to Rs 10 per cylinder. The government is cautious of the political consequences if it proposes for a massive hike in rates of fuel, with elections essentially in 5 states, namely Madhya Pradesh, Chattisgarh, Mizoram, Rajasthan and Delhi.

Being the major elements of country’s huge fiscal deficit, which occurs when total expenditures of the government go beyond the revenue that it produces – exclusive of money from borrowings, fuel subsidy alone sets a yearly load of Rs 90,000 crore on the government.

Things related with price hike will get cleared as the time passes by, however, one way or another it is apparent that mango people may have to plan their budgets, income and expenses in future more intelligently as a consequence of inflating prices of fuel and gas.