India’s cabinet to decide fuel price hike soon

May 29th, 2008 - 5:46 pm ICT by admin  

A file-photo of Manmohan Singh

New Delhi, May 29 (IANS) A meeting of India’s cabinet is scheduled here later this evening or Friday to take a final call on hiking prices of transport and cooking fuels and how to help state-run retailers to avert a crisis due to high cost of crude. Confirming the meeting either Thursday or Friday, to be presided over by Prime Minister Manmohan Singh, Petroleum Minister Murli Deora said the finance ministry may also agree to cut state levies on crude and refined products.

Manmohan Singh himself reviewed the situation with Deora Thursday. Others at the meeting included Planning Commission Deputy Chairman Montek Singh Ahluwalia, External Affairs Minister Pranab Mukherjee and Finance Minister P. Chidambaram.

Prices of transport fuels were last raised in February and retailers have warned that they will not be able to sustain selling gasoline and diesel at the current levels. The Indian Oil Corp even reported its first loss in nine quarters.

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