Petrol and diesel prices are almost certain to increase after an empowered group of ministers (EGoM) meets to decide on fuel pricing on Monday, Oil Ministry sources tell CNN-IBN.
The EgoM, which is headed by Finance Minister Pranab Mukherjee and includes the Oil Minister, will meet on Monday afternoon to consider a Kirit Parikh Committee report that calls for freeing of petrol and diesel prices from government control.
If petrol prices are decontrolled, rates may go up by Rs 3.35 per litre, which being the difference between the retail price and imported cost. Mukherjee may even push for freeing pricing of diesel - the nation's most consumed fuel that is used in transport sector and hence has inflationary impact.
Also on cards is a Rs 50 per cylinder hike in domestic LPG prices, which may be moderated if Railway Minister Mamata Banerjee and other allies in the ruling United Progressive Alliance insist. A marginal increase in politically sensitive kerosene, which is used by the masses for lighting and cooking purposes, may also be proposed at the EGoM.
The EGoM will have to raise the price of petrol by Rs 3.35 per litre and that of diesel by Rs 3.49 a litre to free them from government control.
