It is not only petrol and diesel prices that will be "reviewed" at the meeting of the Group of Ministers (GoM) on Thursday. The prices of two other subsidised commodities -- kerosene and LPG -- will also be reviewed, Petroleum Minister Murli Deora said today.
This would be the first meeting of the GoM convened in November last year. "On January 17, the GoM meeting under the chairmanship of Pranab Mukherjee is taking place in Delhi. That time, it (price hike) will be decided," Deora said.
Deora was talking to reporters after inaugurating the 7th international conference and exposition of Society of Petroleum Geophysicists here.
"What is left to decide is the quantum of the increase," Petroleum Secretary M S Srininvasn said in response to a question on whether a price hike is inevitable.
With crude oil prices at record highs, the three government-owned oil marketing companies -- Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum -- are losing as much as Rs 320 crore a day by selling subsidised products. They have therefore been lobbying for a price hike. There is, however, no political consensus on such a move.
The government also has the option of reducing import duties on crude oil and sales tax on petroleum products and avert a hike.
A statement issued by CPI (M), a key ally of the government, which is opposed to a price hike, said: "It is estimated that the central government has collected Rs 40,000 crore more than the budget estimates through ad valorem taxes. If this amount is returned to the oil companies, the necessity of increasing the prices of petroleum products would not arise."
This would be the first meeting of the GoM convened in November last year. "On January 17, the GoM meeting under the chairmanship of Pranab Mukherjee is taking place in Delhi. That time, it (price hike) will be decided," Deora said.
Deora was talking to reporters after inaugurating the 7th international conference and exposition of Society of Petroleum Geophysicists here.
"What is left to decide is the quantum of the increase," Petroleum Secretary M S Srininvasn said in response to a question on whether a price hike is inevitable.
With crude oil prices at record highs, the three government-owned oil marketing companies -- Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum -- are losing as much as Rs 320 crore a day by selling subsidised products. They have therefore been lobbying for a price hike. There is, however, no political consensus on such a move.
The government also has the option of reducing import duties on crude oil and sales tax on petroleum products and avert a hike.
A statement issued by CPI (M), a key ally of the government, which is opposed to a price hike, said: "It is estimated that the central government has collected Rs 40,000 crore more than the budget estimates through ad valorem taxes. If this amount is returned to the oil companies, the necessity of increasing the prices of petroleum products would not arise."
