Photo graph by PTI

Photo graph by PTI

Petroleum minister seeks EGoM meet on diesel, LPG rate hike

Petroleum minister seeks EGoM meet on diesel, LPG rate hike

New Delhi: With oil companies losing 333 crore per day on selling fuel below cost, petroleum minister S Jaipal Reddy has sought a meeting of a high-powered ministerial panel to decide on revising the rates of diesel, domestic LPG and kerosene.

“I have asked for a meeting of the Empowered Group of Ministers (EGoM)," Reddy told reporters after a meeting with finance minister Pranab Mukherjee, who heads the EGoM.

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The EGoM “meeting would take place before the Winter Session of Parliament", beginning 22 November, he said, adding that a decision on raising prices may “not be easy".

The ministerial panel is essentially a consensus-building body of the Congress-led UPA government and comprises key allies like the DMK, TMC and NC. The allies had in September scuttled plans to limit the supply of subsidised LPG cylinders to 4-6 per household in a year so that subsidies can be cut.

Reddy said his ministry would push for raising prices of all three regulated products, diesel, LPG and kerosene.

On oil companies pressing for a hike in petrol prices, he said PSUs were fully empowered to take a view, keeping in mind rising crude oil prices and depreciating rupee.

“Our ministry does not administer" the price of petrol, which was freed from government control in June last year, he said.

On Tuesday, HPCL director (Finance) B Mukherjee had said that oil firms may have to raise petrol prices, as they were losing 1.50 per litre at the current rates.

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