Government Mulling R 3/litre Rate Hikes Diesel After State Elections

A power group of ministers (EGOME) headed by Finance Minister Pranab Mukherjee is scheduled to meet May 11 to speculate on rising prices of diesel, a senior official, refusing to be named, said in New Delhi.

At Rs 4.3 per liter hike in the price of gasoline, which had been freed from government control in June last year, is also on the cards immediately after the vote in the last phase of elections was completed on May 10, reports PTI.

Oil Ministry officials yesterday discussed the matter with the Electoral Commission to raise prices before the results of Assembly elections are announced May 13 The Election Commission has authorized the move, "he said.

EGoM officially on the agenda are ways to reduce over Rs 180,000 crore revenue loss of state oil companies for 2011-1912 are projected to sell diesel, domestic LPG and kerosene at current rates.

An increase in domestic oil prices may also be discussed at the meeting EGOME, which will determine how the oil companies will be compensated for their losses, "he said.

State-owned Indian Oil, Bharat Petroleum and Hindustan Petroleum, at the time of losing R 16.17 liters of diesel fuel and, after a local sales tax or VAT, wanted to bring rates to parity with international prices of Rs 18 , 19 liters.

Companies do not even raised the price of oil, raw materials, which was issued by the control of the government in June last year due to elections in five states, including West Bengal and Kerala.

Trekking in the same international price of oil is about 8.50 rupees per liter, but the entire burden will not be disclosed to consumers at once. "The oil companies will be asked to stagger excursion through a couple of months, the official said.

In addition to gasoline and diesel, the three oil companies losing Rs 29.69 a liter of kerosene State and Rs 329.73 per 14.2 kg cylinder of LPG domestic.