The Petroleum and Natural Gas Ministry is yet to finalise a proposal to raise fuel prices, particularly diesel.

“It is still at the proposal stage. There is a report by Vijay Kelkar – de-regulation and increase of price. Our Ministry is yet to process and finalise its view on this issue,” Oil Minister Veerappa Moily told mediapersons at an Assocham event.

The Kelkar Committee reportedly has suggested de-regulation of diesel and also hike in prices of other subsidised products such as domestic cooking gas and kerosene. The panel was appointed by the Finance Ministry to draw a roadmap for fiscal consolidation.

Earlier, a panel headed by former Planning Commission member Kirit Parikh suggested de-regulation of fuel prices. After the recommendations; petrol pricing was freed from Government control in June 2011.

Currently, diesel in Delhi costs Rs 47.15 a litre after the last revision of Rs 5.63 for every litre on September 14. Subsidised kerosene costs Rs 14.79 in the Capital and its rates have not been revised since June 2011.

The three public sector oil marketing companies – IOC, BPCL and HPCL – sell diesel at a loss of Rs 10.16 per litre and Rs 32.17 for every litre of kerosene. Subsidised domestic cooking gas is sold at a loss of Rs 490.50 for each refill.

Moily said his Ministry was processing a proposal to increasing the cap on supply of subsidised domestic cooking gas cylinders to nine per household in a year from current limit of six.

(This article was published on January 4, 2013)
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