No EGoM meet on fuel price tomorrow

PTI New Delhi | Updated on June 08, 2011 Published on June 08, 2011

Belying expectations, a meeting of a panel of ministers headed by the Finance Minister, Mr Pranab Mukherjee to decide on raising diesel, domestic LPG and kerosene rates has not yet been scheduled.

The Empowered Group of Ministers (EGoM) on fuel prices were previously said to meet on June 9 but no such meeting has been scheduled for tomorrow, an official said here today.

“A top official of the oil ministry had on May 26 briefed reporters about the impending EGoM meeting taking place on June 9. But the official perhaps may have mixed up issues as a separate EGoM on natural gas allocation was the one that was scheduled for June 9,” he said.

While no EGoM on fuel price was scheduled for June 9, even the ministerial panel on deciding users of natural gas produced from fields of Reliance Industries’ eastern offshore KG—D6 was cancelled.

Oil Minister S Jaipal Reddy is pushing for a hike in diesel, domestic LPG and kerosene rates to cover for rise in crude oil cost. A decision on the issue can be taken only by the EGoM which has representation from all key allies of the ruling United Progressive Alliance (UPA).

“Public sector oil companies are losing close to Rs 465 crore a day on selling diesel, domestic LPG and kerosene at government controlled rates. We cannot continue with this for long,” an oil ministry official said.

The government had on June 25 hiked prices of diesel by Rs 2 a litre, LPG by Rs 35 a cylinder and kerosene by Rs 3 a litre. This hike was only a fraction of the desired increase to bring domestic price on par with international rates

Published on June 08, 2011
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