New Delhi: The ministerial panel on fuels under finance minister Pranab Mukherjee deferred a decision on either allowing oilmarketing companies to set pump prices in tune with international trend or simply raise petrol and diesel prices to reduce losses of state-run companies, ostensibly because key members could not attend the meeting on Monday.

Govt Unlikely To Free Up Fuel Pricing Regime

EGoM To Take Call On Monday

PETROL and diesel prices could rise by up to Rs 3 a litre next week as per a key proposal favouring free auto-fuel rates that awaits the approval of a panel of ministers meeting on Monday.

The State of Madhya Pradesh became one of the leading States in the country to upgrade from BS-II to BS-III fuel. Indian Oil on behalf of the PSU Oil Industry launched the BS-III fuel in Madhya Pradesh on Monday in the presence of Urban Administration Minister Babulal Gaur and senior officials of IOCL.

Puneites will have to pay 50 paise more for petrol and Rs 1.20 more for diesel from June 1. The revised prices will be Rs 52.58 a litre for petrol and Rs 41 a litre for diesel, up from Rs 52.08 and Rs 39.80 in place from April 1.

DRY ON FRIDAY?
Association says hike bleeding their business as customers fill up in neighbouring UP, Haryana where diesel is almost Rs 4 cheaper

The petrol dealers across the Capital have threatened to go on strike to protest the increase in the value added tax (VAT) on diesel.

An Empowered Group of Ministers (EGoM) on fuel pricing is likely to meet after the current Parliament session to discuss freeing petrol, diesel and cooking fuel prices from the government control.

At present, petrol was sold at a discount of Rs 6.63 a litre and diesel at a deficit of Rs 6.25 per litre, an oil ministry official said here.

Ajay Modi / New Delhi May 3, 2010, 0:35 IST

Rising losses due to sale of fuel products like petrol and diesel at government-controlled prices is not the only concern for public sector oil marketing companies (OMCs). These companies are faced with a sharply rising petrol and diesel consumption in tune with the economic recovery and improving industrial activity.