Decontrol fuel prices, limit subsidies: Economic Survey

July 15th, 2009 NEW DELHI - With a fall in international prices of crude, state-run oil companies Wednesday slashed aviation fuel prices by almost 6 percent. The new prices will be effective Wednesday night and come after four consecutive hikes.

July 12th, 2009 Gasoline prices drop 10 cents in past 2 weeksCAMARILLO, Calif. — The national average price of gasoline fell about 10 cents a gallon during the past two weeks to $2.56.

July 2nd, 2009 NEW DELHI - The Economic Survey for 2008-09 Finance Minister Pranab Mukherjee tabled in parliament Thursday has advocated sweeping policy changes like foreign investment in multi-brand retailing and higher foreign stake in insurance companies. The survey report card suggested the cap on foreign equity in insurance sector be raised to 49 percent from 26 percent currently.

July 2nd, 2009 NEW DELHI - India's Economic Survey for 2008-09 tabled in parliament Thursday has called for decontrolling petrol and diesel prices at the earliest even as the opposition protested the fuel price hike announced a day earlier. The government increased petrol and diesel prices by nearly 10 percent Wednesday, citing as a reason the climbing international oil price which has increased the burden on the state-owned oil marketing companies.

July 2nd, 2009 BANGALORE - The residents of Bangalore have expressed widespread resentment over the fuel price hike announced Wednesday which, they feel, would result in increase in prices of other essential products and services. After the hike of petrol prices by Rs.4 per litre and diesel prices by Rs.2 per litre, Bangaloreans now have to shell out Rs.50.66 per litre for petrol and Rs.37.01 per litre for diesel.

July 2nd, 2009 NEW DELHI - Salient features of a wish list in the Economic Survey for 2008-09 released by Finance Minister Pranab Mukherjee in parliament Thursday: - Cut fuel, food and fertiliser subsidy leakages - Raise foreign investment cap in insurance to 49 percent - Allow 100 percent foreign investment in health, weather insurance - Raise foreign investment cap in defence production to 49 percent and in high tech defence to 100 percent - Raise Rs.25,000 crore from divestment every year - Sell 5-10 percent in profitable non-Navratnas - List unlisted state-owned firms, divest at least 10 percent equity - Auction loss-making state-owned firms - Rationalise dividend distribution tax to avoid double taxation - Review customs duty exemptions - Remove fringe benefit tax - Remove commodity and security transaction taxes - Limit subsidy on cooking gas to six-eight cylinders per household - Kerosene subsidy only for non-electrified, non-cylinder homes - Introduce new income tax code - Provide fertiliser subsidy directly to farmers - Target zero fiscal deficit - Eliminate inverted duty structure - Convert specific textile taxes to ad valorem - Lift price control on all drugs except essentials - Roll back excess liquidity once growth picks up - Decontrol sugar and insurance industries - Auction spectrum and make it freely tradable Taking stock of the country's economic condition, the survey said India could grow by around 7.75 percent in 2009-10 if the US economy "bottoms out" by September. Among other observations it made on the economy are: - Economic growth decelerates to 6.7 percent in 2008-09 - Per capita growth at 4.6 percent - Agricultural growth falls to 1.6 percent from 4.9 percent in 2007-08 - Manufacturing sector grows at 2.4 percent - Ratio of fixed investment to GDP increases to 32.2 percent - Fiscal deficit stands at 6.2 percent - Merchandise export grows at 3.6 percent in dollar terms - Overall import growth at 14.4 percent - Social, agriculture and infrastructure sectors need boost - Rural demand still strong.

July 2nd, 2009 NEW DELHI - The Indian economy can expand as much as 7.75 percent this fiscal, says the country's Economic Survey for 2008-09, while calling for sweeping reforms in areas like foreign investment, divestment, taxation and the subsidy regime. "If the US economy bottoms out by September 2009 there would be good possibility for the Indian economy repeating its 2008-09 performance," said the country's annual economic report card tabled in parliament by Finance Minister Pranab Mukherjee.

July 2nd, 2009 NEW DELHI - Introducing a new income tax code, reforming existing tax structure and duties, slashing subsidies on fuel, fertilisers and food were some of the measures suggested by the Economic Survey 2008-09, released here Thursday. The survey, tabled by Finance Minister Pranab Mukherjee in parliament, called for creation of a new income tax code to bring about a neutral tax regime - a tax structure where deductions are consistent and there are no incentives or exemptions from tax.

June 30th, 2009 NEW DELHI - State-run oil companies Tuesday raised jet fuel prices by over 6 percent, the fourth hike in two months, after crude oil price at the global market reached a seven-month high of $72 per barrel. The aviation fuel would now cost Rs.2,307 more per kilolitre in Delhi at Rs.38,558.

June 9th, 2009 NEW DELHI - Deputy Chairman of the Planning Commission Montek Singh Ahluwalia has said the Government can raise funds through selling upto 49 per cent of state-run firms, adding the economic outlook had improved over the past three months. "There can be really no objection to disinvesting upto 51 per cent.

May 29th, 2009 NEW DELHI - The government is actively considering deregulation of auto fuel prices and a decision on this will be taken soon by the cabinet, Minister for Petroleum and Natural Gas Murli Deora said here Friday. He was speaking to reporters after taking charge as the petroleum minister for a second consecutive term.

May 29th, 2009 NEW DELHI - Petroleum and Natural Gas Minister Murli Deora on Friday said he would seek Cabinet approval for oil price deregulation in six weeks. "Decision regarding decontrol of prices is to be taken by the Cabinet," Deora told reporters in response to a question.

April 30th, 2009 NEW DELHI - State-run oil companies Thursday announced a cut in aviation fuel prices by Rs.311 per kilolitre (kl), after three consecutive hikes. The aviation turbine fuel (ATF) will now cost Rs.31,615 per kl in Delhi, effective from Thursday midnight, an Indian Oil Corp (IOC) official said.

March 31st, 2009 NEW DELHI - After raising aviation turbine fuel (ATF) prices March 15 by about 1.69 percent, or Rs.162 per kilolitre (kl), state-run oil companies once again raised prices by an average of Rs 2,750 per kl. ATF will now cost around Rs.29,900 per kl, or about 10 percent more, industry source said.

March 16th, 2009 NEW DELHI - After a string of reductions, state-run oil companies Sunday raised aviation turbine fuel (ATF) prices by at least 1.69 percent, or Rs.162 per kilolitre (kl). Jet fuel will cost Rs.27,275 per kl in Delhi from Sunday midnight as against Rs.27,106.