Home India Politics Deora meets PM on fuel prices, no decision taken

Deora meets PM on fuel prices, no decision taken

By IANS,

New Delhi: Petroleum Minister Murli Deora met Prime Minister Manmohan Singh Wednesay evening to discuss raising prices of petroleum products, but no decision was taken.

Deora is now scheduled to meet Finance Minister Pranab Mukherjee Thursday to discuss the issue, as well as the possibility of issuing oil bonds for public sector oil marketing companies, which have had to suffer losses due to government-fixed low retail prices.

Indian Oil, Bharat Petroleum and Hindustan Petroleum are together likely to lose Rs.44,300 crore in 2009-10, according to official estimates.

Earlier in the day, Deora told reporters, “Of course, prices will be discussed. If you review the financial health of the oil companies, this is a subject that will come up for discussion.”

There is talk about petroleum ministry pushing for more deregulation of prices of petroleum products.

India last raised fuel prices in July 2009 that resulted in gasoline becoming dearer by Rs.4 per litre and diesel by Rs.2 per litre.

“The prices of kerosene and cooking gas are not being changed,” Deora then said, adding that the government would continue to give a subsidy of Rs.15.26 per litre of kerosene and Rs.92.96 per cylinder on these two fuels of the common man’s daily use.