The much anticipated meeting of a high-power panel of ministers on raising fuel prices has been put-off by a few hours to study more options.
The Empowered Group of Ministers headed by the Finance Minister, Mr Pranab Mukherjee, was scheduled to meet at 1.00 pm today, but was put off to later in the day.
This followed an hour-long meeting Mr Pranab Mukherjee had with the Oil Minister, Mr S. Jaipal Reddy, at noon where various scenarios were discussed.
“The meeting of the EGoM has been postponed to 7 pm,” Mr Reddy told reporters after meeting Mr Pranab Mukherjee. “We are working on more options (on fuel price hike and duty rejig as an answer to spiralling crude oil prices). A decision will be announced after the meeting.”
He, however, refused to divulge the details of his discussions with the Finance Minister and the options before the government.
“I will not indulge in speculation,” he said.
The brief postponement may also have been to take on board the opinion of the ruling Congress party’s highest decision making body, the Congress Working Committee (CWC), which is meeting later today.
Raising diesel, domestic LPG and possibly kerosene rates is a politically sensitive decision and the government wants to take all sections on board before taking a decision.
Mr Reddy said the brief postponement is also because a revision in prices, if done, would be effected from midnight tonight.
Any price increase is announced closer to this deadline to avoid hoarding by petrol pump owners, who have in the past shown a tendency to put up ‘no-stock’ signs to earn quick money by selling fuel bought by them at the old price, after the new rates have come into effect.
Earlier in the day, Mr Reddy had stated that his ministry had not made any specific proposal on the quantum of increase or the duty cut desired.
He said only a detailed analysis of the scenario developing from a spike in the rates of international crude oil, on which India depends on to meet more than three quarters of its energy needs, has been submitted to the EGoM.
“My ministry has given no proposal (on fuel price hike or duty reduction) to the EGoM,” Mr Reddy had told PTI here. “We have offered an analysis and the same will be discussed at the EGoM meeting.”
“Nothing (on quantum of hike in diesel, domestic LPG or kerosene price as well as reduction in customs and excise duties) has been circulated. Any speculations (on these) are unfounded,” he added.
Besides Mr Reddy, the EGoM headed by the Finance Minister, Mr Pranab Mukherjee, includes the Agriculture Minister, Mr Sharad Pawar, the Power Minister, Mr Sushilkumar Shinde, the Road Transport Minister, Mr C.P. Joshi, the Chemicals and Fertiliser Minister, Mr M.K. Alagiri, and the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia.
Mr Pawar and Mr Alagiri are unlikely to attend the EGoM meeting as they are not in town.
State-owned oil firms are together projected to lose Rs 1,66,712 crore in revenues this fiscal on selling diesel, domestic LPG and kerosene at government-controlled rates, which are way below the market price.
The EGoM will deliberate on the measures including an increase in retail price, duty reduction and government subsidy, to tackle this loss.
Oil firms currently lose Rs 15.44 per litre on diesel, Rs 27.47 per litre on kerosene and Rs 381.14 on the sale of every 14.2-kg domestic LPG cylinder.