Report of. The Expert Group on. A Viable and Sustainable System of. Pricing of Kirit S. Parikh. Chairman . pricing was also recommended by the Parikh Committee on Integrated Energy Policy (August. ) as one which. He also said that the government agreed to Report in principle implemented Kirit Parikh committee on time which reduced subsidy. Kirit Parikh Committee Latest Breaking News, Pictures, Videos, and Special Reports from The Economic Times. Kirit Parikh Committee Blogs, Comments and .
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Parikh Former Member, Planning Commission.
The other members of the expert group are Mr. Veerappa Moily here today 30th October The summary of the recommendations made by the expert group in the report is reproduced below: Need for Robust refining sector in India. India, which is one of the largest energy consuming countries, needs to ensure that the country maintains self-sufficiency in the refining sector in future. The pricing policies, therefore, should also be geared to ensure sufficient returns to the refineries in the country for long-term sustainability of the petroleum sector and to ensure energy security of the country.
From examination of various alternative pricing mechanisms, the expert group noted that there is no single or unique formula which can be said to represent the correct method for domestic prices in India that would not be distortionary with attendant ill-effects for the economy from the distortions. Therefore, the best course of action is to free the market from price controls at the earliest.
In view of the significant gap between the present administered prices and the international prices, the committee has spelt out the arrangements that may prevail in the interim till the best course of action is implemented.
The Expert Group recommends that since the government has already decided to eventually free diesel price, there is no need to tinker with the existing pricing formula, which, even if modified, will not solve the problem of mounting under-recoveries incurred on sales of controlled products, mainly due to high international crude prices and depreciation of Indian rupee.
The group recommends that the Government should take steps to pass on the impact of rise in price of Diesel to consumers and move rapidly towards making the price of diesel market determined. The Expert Group recommends that diesel price be raised by Rs.
The subsidy on diesel should be capped at Rs. This would imply freeing of price of Diesel beyond this cap. Any rise in the gap between domestic and international prices beyond Rs. If the gap falls below Rs. The second option is recommended by the Expert Group as that would lead to decline in subsidy over time. In the future, oil companies should be permitted to revise the prices above the subsidy cap in line with the changes in the international prices and other costs elements on their own.
Decision on Kirit Parikh committee report soon: Petroleum secy
T he expert group recommends that the fixed subsidy of Rs. The expert group recommends that PDS kerosene is priced at full market price and the benefit of the subsidy to the deserving consumers i.
BPL families, is given through direct cash transfer mechanism. Till this is implemented, the expert group recommends that the price of PDS Kerosene be increased by Rs.
Decision on Kirit Parikh committee report soon: Petroleum secy | india | Hindustan Times
The Expert Group recommends that the limit for subsidized cylinders be reduced from the present 9 to kirkt cylinders per annum to each household and the DBTL scheme be restricted to identified families based on an exclusion criteria.
The price of subsidized domestic LPG be raised by Rs. Piped natural gas to homes be actively promoted in urban areas. After adjusting the upstream contribution, the balance amount of under-recovery on Diesel, PDS Kerosene and Subsidized Domestic LPG should be fully compensated to OMCs by providing cash subsidy from the Government budget until the prices are mirit deregulated and subsidy on these products is eliminated.
Operational and procurement efficiencies. The expert group recommends that OMCs be given the freedom to procure crude oil and petroleum products through a mix of long terms contracts and spot purchases from all available sources.
This can be accomplished without compromising transparency and accountability by working out mechanisms in consultation with the CVC. Operational and procurement efficiencies The expert group recommends that OMCs be given the freedom to procure crude oil and petroleum products through a mix of long terms contracts and spot purchases from all available sources.