Comments
It is not fuel shortage, but the unwillingness to align energy prices with market rates that poses a threat to country’s economy, Planning Commission Deputy Chairman Montek Singh Ahluwalia said today.
India subsidises diesel and cooking fuel and also mandates rates for coal and natural gas that are lower than market price.
“I don’t think it is shortages. It is our unwillingness to align prices (with market rates)”, Ahluwalia said in reply to a question on whether fuel shortage is a serious threat to the economy.
“If you want to import coal, gas or petrol, it is freely available. But the problem is that imported coal is 60 to 70 per cent more expensive,” he told PTI.
“We have not aligned petroleum prices. Diesel prices are low. Kerosene prices are much lower. The price of natural gas is one third. Your domestic price (of gas) is $4.2 per million British thermal unit but imported gas is $13 per mmBtu.”
Even after two small doses of price hikes, diesel is sold at a discount of Rs 10.22 a litre to its imported cost, while kerosene is sold at a loss of Rs 33.18 per litre. Oil firms lose Rs 481 per 14.2—kg LPG cylinder.
Ahluwalia admitted that at $13 per mmBtu price, the demand for natural gas is very low.
“We have to adjust prices (of energy). It is not easy in one go. That is why I think that what government has done on diesel prices is very important and correct thing. Let’s hope that it gets through,” he added.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.