Cabinet meeting to consider increase in oil prices

May 29th, 2008 - 5:11 pm ICT by admin  

Manmohan Singh

New Delhi, May 29 (ANI): The Government is likely to decide today the raising of fuel prices and compensation package for the Oil Public Sector Undertakings. Prime Minister Manmohan Singh held discussionson the issue this afternoon with Petroleum Minister Murli Deora, Finance Minister Chidambaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia The issue is likely to figure in the Cabinet meeting scheduled later today. The Petroleum Ministry is seeking a hike in petrol, diesel and LPG prices together with reduction in excise duties.

Earlier, a proposal by Deora to raise petrol price by Rs 10 a litre, diesel by Rs 5 per litre and that of LPG by Rs 50 per Kg had not gone down well with the United Progressive Alliance (UPA) Government.

Deora again met Chidambaram on May 27 but could not convince him of the urgency to cut import and excise duties to avoid the Rs 2,00,000 crore revenue loss expected on petrol, diesel, domestic LPG and kerosene this fiscal.

Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) can buy crude oil only till July while Indian Oil can afford imports till September. The three firms face huge liquidity crisis as they fail to recover full value of the products sold. (ANI)

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