By IANS
New Delhi : A group of ministers is expected to meet Jan 19 and recommend a fairly small increase in fuel prices, Petroleum Minister Murli Deora said Friday.
“The group of ministers should meet Saturday and go for a minimum hike in petroleum prices,” Deora told reporters on the sidelines of a function organized here to launch oil and gas conservation fortnight 2008 Friday.
The panel met Thursday but failed to evolve a consensus over the fuel price hike.
The issue of fuel prices assumed added urgency after international crude oil prices breached $100 per barrel on New York Mercantile Exchange early this month.
According to the petroleum ministry, the combined losses of state-owned oil marketing companies due to selling fuel below cost are projected to cross the Rs.700-billion ($17.82 billion) mark by the end of fiscal 2007-08 if they are not allowed to raise prices.
So far, the government has issued oil bonds worth Rs.234 billion ($5.95 billion) to help oil-marketing companies to reduce their losses.