Home Economy Expert group’s report on fuel pricing by month-end

Expert group’s report on fuel pricing by month-end


New Delhi : An expert committee on fuel pricing, headed by eminent economist and former Planning Commission member Kirit Parikh, will submit its recommendations Jan 31.

“I will give my report on January 31 concerning petroleum product pricing,” Parikh told reporters Wednesday after a meeting of an expert group on low carbon economy, of which he is the chairman.

The five-member committee is expected to advocate dual pricing for petroleum products, with petrol, diesel and cooking gas to be sold to low-end consumers at subsidised rates, and the more affluent being charged more.

Fuel pricing has gained significance with the three state-owned oil marketing companies — Indian Oil, Bharat Petroleum and Hindustan Petroleum — expected to incur losses of around Rs.45,000 crore this fiscal because of subsidised retail prices.

At current global prices, the three public sector companies are losing Rs.299 per cooking gas cylinder, Rs.17.23 per litre of kerosene, Rs.3.06 per litre of petrol and Rs.1.56 per litre of diesel.

The petroleum ministry has sought a compensation of Rs.31,700 crore from the finance ministry for the three oil marketing companies.

Petroleum minister Murli Deora has also met Prime Minister Manmohan Singh and sought immediate issue of oil bonds worth Rs.20,000 crore to them.