Survey backs decontrol of fuel pricing, shift to direct subsidy for poor through coupons

FREE fuel pricing from the government

Cabinet Split On Fertilizer Price Fears

In a first step towards reining in a spiralling fertilizer subsidy bill that crossed Rs 100,000 crore in 2008-09, the cabinet bit the bullet on Thursday and decided to de-control prices of all fertilizers other than urea while fixing subsidy on these based on their nutrient content from April 1, 2010.

The impact of the recommendations of the expert group on pricing of petrol, diesel, kerosene and LPG on the poor and on the price level should be no more than that of present policy and most likely smaller over time. The group has recommended freeing petrol and diesel prices and some increases in prices of kerosene and LPG.

Murli Deora

Planning Commission deputy chairman Montek Singh Ahluwalia on Thursday said the government should dismantle the administered pricing of fuel, as it would keep prices low even when commodity prices start rising.

New Delhi: The oil ministry will make a strong pitch to unshackle petrol prices from government control and introduce a differential pricing mechanism, along with a small price increase of Re 1 a litre for diesel, when the Cabinet meets on Thursday.

In case it goes through, the proposal for deregulation will mean a jump of Rs 4.71 in the price of a litre of petrol.

Reeling under the double whammy of high inflation and rising subsidy burden, the Centre may settle for a bare minimum hike in auto and cooking fuel prices

AN INCREASE in the prices of petrol and diesel appears imminent as top Congress leaders prepare on Wednesday to ponder the Kirit Parikh panel report that has recommended radical overhaul of the fuel pricing system in the country.