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Updated: June 12, 2012 15:51 IST

No proposal to hike diesel, LPG prices: Reddy

Sujay Mehdudia
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Jaipal Reddy :
The Hindu
Jaipal Reddy : "We are not considering any hike in prices of diesel, domestic LPG and kerosene. It is out of question right now". File photo: K.V. Srinivasan

Ending suspense over the possible hike in the prices of diesel, LPG and kersosene, the Centre on Monday ruled out any such move.

Petroleum and Natural Gas Minister, Jaipal Reddy on Monday said there was no proposal at the moment before the Government to hike diesel, domestic LPG cylinder and kerosene price.

He also said that no timeframe has been fixed for the meeting of the Empowered Group of Ministers (EGoM) to consider such a hike. “We are not considering any hike in prices of diesel, domestic LPG and kerosene. It is out of question right now,’’ Mr. Reddy to journalists after his meeting with the Finance Minister Pranab Mukherjee to discuss the impact of fuel price hike on inflation. It is learnt that Mr. Reddy also impressed upon the need to convene a meeting of the EGoM at the earliest to tackle the issue of heavy losses being incurred by the oil marketing companies (OMCs) on the sale of diesel, LPG and kerosene at a subsidised price.

The Chief Economic Adviser Kaushik Basu was also present at the inter-ministerial grouping on inflation. The EGoM on fuel prices, headed by Mr. Mukherjee, has not met since June last year.  

Mr. Reddy said the meeting was not convened to discuss diesel, LPG and kerosene prices but to discuss the inflationary impact. “I was requested to come and offer my insights before they finalise the inter-Ministerial group recommendations. I focused on the price of diesel and its impact on inflation as a whole. In my perception, the EGoM will not meet any soon. Not at least this month,’’ he added.

However, officials in the OMCs said that next review of the petrol prices will come up on June 1. The government is still trying to cool tempers of its allies who had protested against the petrol hike before biting the bullet on the diesel, LPG and kerosene issue. The government had on May 24 effected the steepest price hike of Rs. 7.54 per litre in the price of petrol drawing protests from the opposition, UPA allies and within the Congress party.

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While two wheeler users and auto rickshaws subsidize the fuel for rich SUV owners, the least the government can do is reduce the enormous tax on petrol. It is absolutely unfair that millions of much poorer petrol vehicle users should subsidize rich diesel vehicle owners who consume a lot of fuel and have much more than enough money to pay for it.

from:  B S Kumar
Posted on: May 28, 2012 at 23:59 IST

The hike in price of petrol has drawn further instability in the country than covering up the loss of oil companies. It is unfortunate that bureaucrat failed once again in establishing equal
parity between rich and poor.
Hiking LPG will certainly impact the inflationary by enlarge to the middle class segment.
I guess government has realized it

from:  gururaj
Posted on: May 28, 2012 at 23:06 IST

The minister only said that price hike of diesel,kerosene and LPG
wouldn't come immediately. As the EGoM will be discussing the effects of
continuing subsidies on the above with the OMCs, it is anybody's guess
when the hike will materialise!

from:  jayan
Posted on: May 28, 2012 at 21:36 IST

It is very un fortunate tosee the statement of sree jayapalreddy minister forpetrolem and naturalgas as he is diverting the attention of the people cleverly not to participate in proposed bandhs and rallies on 31/05/2012 as he is not going to increase the rates for LPG; KEROSENE AND DIESEL FOR shorter period,

from:  AMRUTHAREDDY
Posted on: May 28, 2012 at 20:46 IST

They can make yellow zone and white zone at each pump and supply diesel at subsidised rate to yellow board vehicles and at petrol rate to white board vehicles.

from:  Khushal Hasan
Posted on: May 28, 2012 at 19:58 IST

In India, Diesel is a subsidized fuel.
So why is the government allowing the sale of vehicles like Toyota Fortuner and BMWs and its likes with Diesel engines? Do such owners need government subsidy to show-off thier status and why should ordinary Indians who ride scooters and Bikes pay extra subsidy for them?
There should be immediate change in the system and production of Diesel vehicles be restricted t only commercial and defence vehicles.

from:  Gaurav Ghosh
Posted on: May 28, 2012 at 19:52 IST
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