Ahead of the much anticipated meeting of a high power panel of ministers, the Oil Minister, Mr S. Jaipal Reddy, today said his ministry has made no specific proposal on increasing auto and cooking fuel prices.
Mr Reddy said only a detailed analysis of the scenario developing from spike in international crude oil prices, on which India depends on to meet more than three quarters of its energy needs, has been submitted to the Empowered Group of Ministers (EGoM).
“My ministry has given no proposal (on fuel price hike or duty reduction) to the EGoM,” Mr Reddy told PTI here. “We have offered an analysis and the same will be discussed at the EGoM meeting at 1 pm (1300 hrs) today.”
“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.
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 measures including an increase in the 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.