No decision yet on fuel price hike, Deora says

No decision yet on fuel price hike, Deora says

New Delhi: Union petroleum minister Murli Deora on Sunday held an inconclusive meeting with finance minister Pranab Mukherjee regarding fuel prices and mounting under-recoveries of oil marketing firms as the United Progressive Alliance (UPA) government continued to hedge its political bets on the issue.

“No decision has been taken till now," Deora told reporters after the meeting.

Petroleum secretary S. Sundareshan said, “The meeting was about under-recoveries and the Kirit Parikh Committee report."

The petroleum ministry’s proposals, based on the recommendations of a panel led by former Planning Commission member Kirit Parikh, could increase inflationary pressure on the economy.

It entails raising the prices of diesel, petrol, kerosene and cooking gas by as much as Rs2 per litre, Rs3 per litre, Rs3 per litre and Rs50 per cylinder, respectively, overturning decades of control by the government to shield consumers from global market fluctuations.