A veteran of India's energy sector, Prof Kirit Parikh chaired the committee that submitted the 2013 groundbreaking report on pricing methodology for diesel, domestic LPG and PDS kerosene.
Even as demand for cement has picked up from Q3 FY2018 and the trend is expected to continue in Q4 FY2018, with the growth expected at around 5% in FY2018 and FY2019, expectation of higher petcoke, coal and diesel prices are likely to put pressure on the profitability margins and debt metrics of the cement companies in the coming quarters.
Petrol price was cut at the beginning of July by 89 paise a litre and diesel by 49 paise a litre, the first decrease in rates in two months. Petrol will cost Rs.64.76 a litre in Delhi as compared to Rs.65.65 per litre currently, Indian Oil Corp, the nationÂ´s largest fuel retailer, announced. Similarly, diesel will cost Rs.54.70 per litre as against Rs.55.19 a litre.
After decontrol of petrol and diesel, the government has chalked out a plan to usher in market-determined pricing for kerosene over the next two to three years. The stage is being readied for deregulating the poor manÂ´s fuel as the government targets 24-hour electricity supply to all rural households under the Rs 44,000 crore Deendayal Upadhyaya Gram Jyoti Yojana by the end of 2017.
The economic survey has hinted at higher carbon taxation on petroleum products and coal to gain a footing at the year-end climate change dialogue in Paris. The survey highlighted the need and scope for rationalizing coal and petroleum prices and making them equivalent to international prices.
The industry estimates that falling crude oil prices, lower fuel subsidies along with recent diesel tax hikes could together add almost Rs 1.1 trillion to the Union Budget. And with the government planning to spend about $8 billion of that on infrastructure and manufacturing activities, the infrastructure sector is looking at a brighter year ahead.