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PSU OMCs gain on likely diesel price hike

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Capital Market Mumbai
Last Updated : Apr 22 2013 | 2:44 PM IST

Indian Oil Corporation (up 1.72%), BPCL (up 0.90%) and HPCL (up 0.22%), edged higher.

The BSE Sensex was up 45.92 points, or 0.23% to 19,712.51.

According to media reports, the government has formally started the consultation process for raising diesel and cooking gas prices - the latter with an increased annual cap of nine subsidised refills - in line with the recommendations of a finance ministry panel.

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The committee under former bureaucrat Vijay Kelkar, tasked to suggest a roadmap for cutting fiscal deficit, has suggested raising diesel price periodically to align it with market rate by the beginning of 2014-15 fiscal. The panel also suggested raising cooking gas and kerosene prices, reports added.

Meanwhile, the Ministry of Petroleum and Natural Gas on 1 January 2013 said that the under-recovery on High Speed Diesel (HSD) applicable for the first fortnight of January 2013, effective 1 January 2013, has decreased to Rs 9.03 per litre from Rs 9.28 per litre for the 2nd fortnight of December 2012.

In case of Domestic LPG, the under-recovery for January 2013 remains unchanged at Rs 490.50 cylinder. The Under-recovery on PDS Kerosene, too, has remained at same level of Rs 30.64 per litre for January 2013, the ministry said. PSU OMCs are currently (effective 1 January 2013) incurring daily under-recovery of about Rs 389 crore on the sale of Diesel, PDS Kerosene and Domestic LPG.

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First Published: Jan 10 2013 | 11:32 PM IST

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