The government may, from next week, find it easier to decontrol petrol and diesel prices as softening global rates would require fuel costs to be raised by just Rs 3.50 a litre for the purpose.
An Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, is scheduled to meet on June 7 to consider a Kirit Parikh Committee report that calls for the freeing of petrol and diesel prices from governmental control, besides steep hikes in LPG and kerosene rates to cut fuel subsidy.
"Earlier, there were doubts if the government would actually free auto fuel prices - particularly that of diesel — as the hike required to make them at par with international rates was over Rs 6 per litre. But the fall in global oil prices has made the task easier," an Oil Ministry official said.
The EGoM will have to raise the price of petrol by Rs 3.35 per litre and that of diesel by Rs 3.49 a litre to free them from government control.
International crude oil prices have shaved off over $10 per barrel to bring them down to $72-74 a barrel. "The hike needed to free auto fuel prices till last week was Rs 6.07 a litre in petrol and Rs 6.38 a litre in diesel. Raising prices, particularly that of diesel by such an amount in one go, was considered politically difficult," he said.
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with thanks : source : Tribune
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