The Petroleum and Natural Gas Ministry will soon take a decision on the Kirit Parikh Committee report, which has recommended a hike in prices of LPG and kerosene, a top government official said in Chennai on Saturday.
"The implementation of committee report is for the future. So, we will certainly take a decision, much before resource allocations for oil marketing companies for 2010-11 and beyond. The Ministry is in the final stage of examining it. We have taken it before the Cabinet," Secretary, Ministry of Petroleum and Natural Gas, S Sundareshan said.
He opined that implementation of the report is relevant from the next financial year.
The Committee had suggested an increase of Rs 6 a litre in kerosene and a Rs 100 per cylinder hike in LPG prices.
On the fuel price hike, Sundareshan said volatility of international crude prices meant that some "hard decisions" needed to be sometimes taken in pricing of fuel.
He pointed out that the combined under recovery of OMCs is Rs 45,000 crore for the current fiscal. The government could have specific schemes to protect poorer sections, particularly in the case of LPG for some quarters and kerosene. "But no consumer can feel he can be continuously insulated from volatility in international prices and such a policy cannot be sustained in the long run," he said.