Immediate hike in auto fuel prices ruled out
16 Feb 2010
Despite the Kirit Parikh committee report recommending market-related auto fuel prices, there is unlikely to be a hike in fuel prices anytime soon, as petroleum minister Murli Deora indicated after talks with finance minister Pranab Mukherjee on Sunday.
"No decision has been taken," Deora told reporters after the meeting.
Deora and Mukherjee have clearly failed to work out a way to overcome opposition within the ruling United Progressive Alliance to any hike in prices, with complete decontrol looking an even further cry. The main opponents within the UPA are the Trinamool Congress and the DMK.
When the union cabinet met last week, it did not take up the recommendations of the Parikh committee at all. The committee had advised that the government should let the market decide the price of petrol and diesel, and also sharply increase the prices of cooking gas and kerosene.
Petroleum secretary S Sundaresan said that the two ministers discussed the revenue losses of the oil marketing companies in their hour-long meeting. All three marketing companies are state-run.
"The meeting was about under-recoveries of oil marketing companies and the Kirit Parikh report. No decision has been taken," he said.
