Hike in diesel, cooking gas prices likely this week
23 May 2011
1
A decision on hiking the prices of diesel and cooking gas may finally be taken this week. The 'empowered group' of cabinet ministers will meet in a few days to chalk out a strategy on this, according to union agriculture minister Sharad Pawar, who is part of the EGoM.
"I think the EGoM meeting on diesel pricing will be called this week," Pawar, a member of the EgoM, told reporters today on the sidelines of an ICAR-CII event in New Delhi.
Last week the retail prices of petrol – which ostensibly are no longer under government control, but in practice remain so – were hiked by Rs5 a litre.
This has led to an immediate spike in the sale of diesel-fuelled cars, according to several reports citing carmakers. Buyers have clearly noticed the government's reluctance to implement any hike in diesel prices.
While petrol prices have been rising steadily since June 2010, diesel prices haven't changed for almost 11 months. Last year the government had promised that prices of all fuels would be liberalised and more market-driven policies introduced.
But car buyers obviously know that the government's professed intentions never match its actual policies.
A hike in diesel and domestic fuels, particularly the standard LPG (liquefied petroleum gas) cylinders, was anticipated by the media almost along with the latest petrol price hike. But the EGoM meet on the matter has been constantly put off, on the specious ground that some ministers are unable to attend.
The petroleum ministry, batting for the oil retailers (all three of which are government-owned), has sought a minimum hike of Rs4 a litre for diesel and a Rs25 per cylinder for LPG, as crude oil prices ruled above $100 a barrel for some time now.
"I think the EGoM meeting on diesel pricing will be called this week," Pawar, a member of the EgoM, told reporters today on the sidelines of an ICAR-CII event in New Delhi.
Last week the retail prices of petrol – which ostensibly are no longer under government control, but in practice remain so – were hiked by Rs5 a litre.
This has led to an immediate spike in the sale of diesel-fuelled cars, according to several reports citing carmakers. Buyers have clearly noticed the government's reluctance to implement any hike in diesel prices.
While petrol prices have been rising steadily since June 2010, diesel prices haven't changed for almost 11 months. Last year the government had promised that prices of all fuels would be liberalised and more market-driven policies introduced.
But car buyers obviously know that the government's professed intentions never match its actual policies.
A hike in diesel and domestic fuels, particularly the standard LPG (liquefied petroleum gas) cylinders, was anticipated by the media almost along with the latest petrol price hike. But the EGoM meet on the matter has been constantly put off, on the specious ground that some ministers are unable to attend.
The petroleum ministry, batting for the oil retailers (all three of which are government-owned), has sought a minimum hike of Rs4 a litre for diesel and a Rs25 per cylinder for LPG, as crude oil prices ruled above $100 a barrel for some time now.
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