Diesel price may be cut for first time in 7yrs; petrol by Re 1/lt 10/09/2014

Diesel price may be cut for first time in 7yrs; petrol by Re 1/lt
10/09/2014 00:21
With Brent crude oil prices dipping below USD 100 per barrel, petrol prices may be cut by Re one a litre and there is also a likelihood of first reduction in diesel rates in seven years. Petrol and diesel rates are due for revision on September 15 and there is a possibility of reduction in retail prices if benchmark Brent crude continues to stay below $100 a barrel mark, official sources said. This will be the fourth straight reduction in petrol price since last month. Rates were last cut by 1.82 a litre on August 31. Prior to that, petrol price was cut by Rs 1.09 a litre on August 1 and again by Rs 2.18 a litre on August 15. Sources said there is also likelihood of a reduction in diesel prices, the first in seven years. Diesel prices were last hiked on August 31 by 57 paise in line with the January 2013 decision to raise rates in small doses every month to bridge the difference between retail selling price and cost. The difference, called under-recovery, had reduced to just 8 paise a litre after the last increase. Diesel currently costs Rs 58.97 per litre in Delhi.

Diesel price may be deregulated over next 12 months: Moody's 02/07/2014

Diesel price may be deregulated over next 12 months: Moody's
02/07/2014 16:44
Diesel prices are likely to be completely deregulated over the next 12 months as monthly increase in rates bridge the gap between cost and retail price, rating agency Moody's said today, reported PTI. Moody's expects the new government to increase the retail selling prices of controlled fuel products - kerosene and liquefied petroleum gas (LPG), to help control its subsidy burden, as per the media reports. According to media reports, the government, in its view, is most likely to go for staggered increases, similar to the ongoing 50 paisa per litre hike in diesel prices every month. This is because, while a one-time price increase will have a more immediate impact on reducing the burden, it would also be more challenging to push through, given the need to control inflation, as per the reports in the media. "We also expect the government to be in a position to completely deregulate diesel prices over the next 12 months, as retail prices move closer to international market rates," said Vikas Halan, Moody's Vice President and Senior Credit Officer.