Desired outcomes can be reached through a series of ‘imperfect’ small initiatives What is to be done? How can we untie the Gordian knot that has so entangled the political economy of petroleum product prices? This is the question that now exercises our most experienced politicians and our ablest economists. Most well informed people know that a country that imports 80 per cent of its oil requirements cannot de-link itself from the...

-The Business Standard Govt cannot delay increasing diesel, LPG prices Petroleum Minister Jaipal Reddy, speaking after a ministerial-level meeting on inflation on Monday, said that the government had no immediate plans to raise the administered prices of diesel, kerosene and domestic LPG (liquefied petroleum gas). This comes after oil marketing companies raised the price of petrol last week by Rs 7.50 per litre, an increase of 12 per cent. Mr Reddy’s...

-The Economic Times Open-ended consumption subsidies on petroleum products have wrought havoc on government finances. Reportedly, the trio of public sector oil marketing companies have of late blocked some 3.8 million parallel household connections of liquefied petroleum gas (LPG), in a bid to rationalise the subsidy outgo. The move to weed out multiple LPG connections does make sense. But we need to keep the big picture in mind and overhaul the pricing and...

-The Business Standard Govt should not explore unworkable solutions The petroleum ministry’s “single kitchen” concept for new consumers of liquefied petroleum gas, or LPG, is a classic case of using a flawed solution to compensate for policy distortions in the pricing of petroleum products. The norm of allowing one LPG connection per household with one kitchen may look good on paper but it is hardly a foolproof mechanism to curb the misuse...

-PTI   The Competition Commission of India (CCI) today imposed a penalty of Rs 165.58 crore on 48 LPG cylinder makers for forming a cartel while bidding during the tenders floated by Indian Oil in 2010-11. The competition watchdog imposed the penalty after finding them guilty of manipulating the bids and quoting "identical rates in groups through an understanding and collusion action". The ruling was based on the findings of the CCI's Director General...