Petroleum Ministry pushing for deregulating fuel prices

New Delhi, Feb 15 (PTI) Unmindful of opposition within
the ruling coalition, the Indian Petroleum Ministry is pushing
for freeing of petrol and diesel prices from government
control along with a marginal hike in domestic LPG and
kerosene rates.

Indian Finance Minister Pranab Mukherjee, is also
believed to be in favour of decontrolling auto fuel prices to
limit the government's subsidy outgo but a decision is
unlikely in the next 7-10 days as the ruling United
Progressive Alliance (UPA) managers build political consensus
on the issue, an oil ministry official said.
The Indian Budget for 2010-11, to be presented by
Mukherjee in Parliament on February 26, may provide pointers
towards deregulation of prices as petrol and diesel rates
would be revised every month based on average international
price of the last 30 days.
The official said Mukherjee and Indian Petroleum Minister
Murli Deora feel that the current low international crude oil
prices, possibly provide the last window to usher in reforms
in the sector without consumers feeling the pinch.
Deregulation, at current rates would result in petrol
prices going up by less than Rs 4 a litre and diesel by a
shade lower than Rs 2 per litre.
Besides, the Indian ministry wants LPG rates to be raised
by Rs 20-25 per 14.2 kg cylinder and kerosene by at least Re
one per litre, he said. MORE PTI ANZ
RDM


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