Ministry for consensus on fuel price hike

The petroleum and natural gas ministry is pushing for freeing petrol and diesel prices and a marginal increase in cooking fuel rates, but is awaiting a political consensus on the issue, a top ministry official said.

The petroleum and natural gas ministry is pushing for freeing petrol and diesel prices and a marginal increase in cooking fuel rates, but is awaiting a political consensus on the issue, a top ministry official said.

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“We are proposing deregulation of petrol and diesel prices and a marginal hike in kerosene and liquefied petroleum gas. But before that, we need to evolve political consensus. It may take another 10 days or so,” he said.

He said the petroleum ministry's proposal includes a monthly review of auto fuel prices in the free pricing era. Freeing auto fuel prices at the current level would result in an increase of Rs 4.72 per litre in petrol and Rs 2.33 in diesel.

Petroleum Minister Murli Deora had on Sunday met Pranab Mukherjee to discuss an acceptable hike in fuel prices, but they failed to arrive at any decision. “There is unlikely to be any immediate decision on fuel prices,” the official said.