Oil price hike

The Oil Ministry has ordered the diversion of natural gas from industries to the city gas distribution sector to cool CNG and piped cooking gas prices that have shot up by 70% on the use of imported fuel. Less than three months after it ordered the use of costlier imported LNG to meet incremental demand for automobile fuel CNG and household kitchen gas PNG, the ministry on August 10 reverted to an old policy of primarily supplying domestically produced gas for city gas operations. The allocation for city gas operators like Indraprastha Gas Ltd in Delhi and Mahanagar Gas Ltd of Mumbai has been increased from 17.5 million standard cubic meters per day to 20.78 mmscmd, officials said. The increased allocation will meet 94% of the demand for CNG to automobiles and piped cooking gas to household kitchens in the country. Previously, about 83-84% of the demand was met and the remaining was met through the import of LNG by GAIL, they said. Use of domestic gas instead of imported fuel … [Read more...] about Oil Ministry to divert gas from industries after CNG, piped gas prices jump 70% in a year

In a dramatic twist to the debate on price rise in the Lok Sabha on Monday, Trinamool Congress (TMC) Kakoli Ghosh Dastidar bit into a raw brinjal to ask if the Narendra Modi government was encouraging people to consume raw food as cooking gas or LPG cylinders were no longer affordable. Initiating a debate on the issue of the price rise in Lok Sabha, Congress member Manish Tewari said that the Centre’s policies have have hit 25 crore households in the country hard and widened the divide between the rich and the poor. BJP leader and former Minister of State for Finance Jayant Sinha asserted that there is no mehngai (inflation) and the opposition has been looking for it but is unable to find it. The debate also witnessed Biju Janata Dal (BJD) leader Pinaki Misra raising the issue of high net worth individuals giving up Indian citizenship and asked Finance Minister Nirmala Sitharaman to look at the aspect of such people being harassed by Central agencies like the Enforcement … [Read more...] about Parliament proceedings | Opposition slams Centre in Lok Sabha over price rise and GST

The RBI’s Monetary Policy Committee on Friday unanimously decided to raise the repo rate by 50 basis points (bps) to 5.4 per cent with immediate effect while focussing on the withdrawal of accommodation. It has also retained the inflation and GDP forecasts for the current financial year 2022-23 at 6.7 per cent and 7.2 per cent, respectively. Key Interest Rate Hiked By 50 bps The key repo rate has increased by 50 basis points, which is the third hike in a row after 40 bps hike in an off-cycle monetary policy review in May and 50 bps in June. The repo rate has now crossed the pre-pandemic level of 5.15 per cent and is the highest since August 2019. The bank rate, standing deposit facility (SDF) and marginal standing facility (MSF) has also increased by 50 bps each to 5.65 per cent, 5.15 per cent and 5.65 per cent, respectively. Srikanth Subramanian, CEO-Designate of Kotak Cherry, said, “The RBI rate hike of 50 basis points is in line with our expectations. With Friday’s rate … [Read more...] about RBI MPC Meeting Highlights Today: Repo Rate Hiked 50 bps; FY23 Inflation, GDP Outlook Retained

Home owners could be paying nearly £5,000 extra a year for mortgages as interest rates on loans head towards seven per cent. That will double this year’s projections for repossessions to 24,000 by 2024 according to an economic consultancy’s analysis of latest Bank of England figures. Andrew Wishart of Capital Economics said: “The big risk is that the BoE can’t get inflation down and interest rates keep rising. “Repossessions will come down the line in a year to 18 months.” On Thursday the Bank of England announced the highest base rate rise in 27 years of 0.5% to 1.75% meaning an extra £52 a month on the average home loan - £198 more since last November. But housing experts we spoke to think rates of between five and seven per cent are likely next year before falling again in 2024. That means a £200,000 repayment mortgage over 25 years costing £1,002 a month now would go up an extra £168 a month or £2,016 a year at 5% and £412 a month or £4,944 a year at 7%. Bank of … [Read more...] about Home owners face £5,000 a year mortgage hikes – with repossessions doubling

The average price of gasoline in the U.S. fell below $4 per gallon Thursday for the first time in months, offering some respite to drivers. The national average price for regular unleaded gas dropped to $3.99 a gallon on Thursday, according to the American Automobile Association . That price is the lowest it’s been since early March. Gasoline prices surged to a record high in June at $5.02 per gallon amid Russia's war in Ukraine, according to AAA data. The AAA had anticipated that the national average could drop to below $4 this month as fears of major restrictions on supply have eased since Moscow first launched its invasion in February. The association also noted that fewer drivers have been fueling up lately, as Americans change "their driving habits to cope with higher pump prices." “Oil is the primary ingredient in gasoline, so less expensive oil is helpful in taming pump prices,” said Andrew Gross, AAA spokesperson on Monday. “Couple that with fewer drivers … [Read more...] about U.S. gas prices fall below $4 for the first time in months

Editorial board (The Jakarta Post) PREMIUM Jakarta   ● Fri, August 5 2022 Statistics Indonesia’s (BPS) announcement earlier this week that headline inflation (the prices of all goods and services) in July was 4.94 percent year-on-year, the highest since 2015, should lead to stronger pressure on Bank Indonesia (BI) to rethink its dovish stance, otherwise the expectations of rising prices may become entrenched. Even though core inflation (excluding energy and food prices) was still relatively low at 2.86 percent and the year-to-date core inflation was only 2.11 percent, the central bank will have to start tightening its monetary policy, especially after the United States Federal Reserve hiked its rate by 75 basis points last week. This cut down the interest rate differential between Indonesian and US bonds to a mere one percentage point. However, given the huge fiscal support already provided by the government to cushion the inflationary impact of energy prices, BI … [Read more...] about BI’s turn now to act

The leader of the Liberal Democrats has called on the Government to cancel the energy price cap increase and absorb the £36billion cost of the increase as living costs are set to spiral out of control. Ed Davey is the latest political figure to urge the outgoing Prime Minister to attempt to tackle the cost of living crisis before he leaves No10 next month. He accused the Tory leadership hopefuls of "living in a parallel universe" as they have "no idea" how to help families through what could be the toughest winter in decades. The Liberal Democrats say the estimated £36 billion cost should be met by expanding the windfall tax on oil and gas company profits, and using the Government’s higher-than-expected VAT revenues as a result of soaring inflation. Inflation is set to skyrocket to 13% or more in October, the Bank of England warned last week. Boris Johnson was nowhere to be seen when the Bank of England announced its worrying inflation forecasts last week ( Image: … [Read more...] about ‘Cancel the energy price cap increase’, Lib Dem leader Ed Davey tells the Tories

Household costs could rise by £6,000 by the end of the year, as the cost of living crisis continues to deepen. The main reasons for bills going up are increases in energy bills , food and mortgage costs . The average household will pay £6,219 more this December compared to the same month of 2021, according to the Centre for Economic and Business Research (CEBR). CEBR said bills will go up by £4,610 between now and December, the Daily Mail reports . The main culprit is rising energy bills. Worrying new analysis shows the financial pain facing the UK ( Image: Getty Images/Maskot) Cost of Living Our Cost of Living team of experts are here to help YOU through a very difficult year. They'll be bringing you the latest money news stories and also providing specialist advice. Whether it's rocketing energy bills, the cost of the weekly shop or increased taxes, our team will be with you all the way. Every Thursday at 1pm they will take part in a … [Read more...] about Household bills could rise by £6,000 this year as price of energy, housing and food soars

U.S. inflation slowed in July by more than expected, prompting the Biden White House to announce Mission Accomplished. “Before I begin today I want to say a word about the news that came out today relative to the economy. Actually, I just want to say a number: Zero. Today we received news that our economy had zero percent inflation in the month of July,” President Joe Biden said on Wednesday. The idea that we had no inflation in July will come as a surprise to most Americans, who saw prices on most things they buy go up. The zero figure Biden is referring to comes from the fact that the headline Consumer Price Index was unchanged from the prior month, largely due to a steep decline in the price of gas. Excluding energy, consumer prices rose 0.4 percent in July compared with June. That will not feel like zero inflation to most Americans. This is the Biden administration reverting to its preferred reaction to economic news: attempt to change reality by changing the description … [Read more...] about Breitbart Business Digest: Joe Biden Declares Mission Accomplished on Inflation

Even as the global commodities prices are witnessing easing amid recession fear, inflation in India might have also slowed in July. Recently, crude oil prices have fallen, which has given respite to domestic commodity prices as well. The RBI has also kept its inflation forecast unchanged at 6.7 per cent for the current financial year 2022-23. According to a Moneycontrol poll, retail inflation may have dropped to 6.7 per cent in July. The inflation, whose latest official data will be released on Friday, in June slightly eased to 7.01 per cent as compared with 7.04 per cent in May. According to the Moneycontrol report, headline retail inflation likely cooled in July, led by lower food prices, with prices of certain key items posting a sequential fall. Vivek Iyer, partner and leader (financial services risk) at Grant Thornton Bharat expects inflation to be above 6 per cent for the second and third quarters. “With inflation expected to go below 6 per cent in Q4 of FY23 and then to … [Read more...] about Retail Inflation Likely to Drop in July; Will it Come Under RBI’s Tolerance Level?