Fuel Price Hike Decision to be Taken at EGOM in June

Fuel Price Hike Decision to be Taken at EGOM in June
A decision on fuel price hike would be taken at the Empowered Group of Ministers meeting slated to be held in New Delhi on June 7, Petroleum Minister Murli Deora said today.

The EGOM would meet under the chairmanship of Finance Minister Pranab Mukherjee, Deora told reporters after a meeting of the Parliamentary Consultative Committee here.

Deora said no concrete decisions were taken at the meeting which discussed various matters on the heavy losses incurred by the oil marketing companies.

"Some members suggested fuel price hike as the oil companies are making heavy losses. We would not like to increase the fuel price. But sometimes it is not possible as 80 per cent of oil imported is consumed," he said.

He said that MPs have also urged the government to provide some subsidy to the oil companies to cover the losses.

Oil Secretary S Sundareshan said, "If the price of oil, LPG and petrol does not go in tandem with crude, it is difficult to say at what price we require to increase the price (of fuel). But all that can be said is that at the (prevailing) prices we require to increase."

On the oil marketing firms facing huge losses, he said "last year (2009-2010) the extent of under recovery was to the order of Rs 46,000 crore of which Rs 14,200 crore was provided by upstream companies and Rs 26,000 crore by government as cash."

Asked about the gas pipeline connectivity for Tamil Nadu, Deora said the Kakinada-Chennai Pipeline connectivity and Chennai-Tuticorin Pipeline connectivity had been cleared by the Ministry and the work has started.

Similarly, work on Kochi-Mangalore Pipeline, which will also cover Coimbatore, Salem and Erode in Tamil Nadu and another Chennai-Bangalore Pipeline connectivity have also commenced. "We are fully confident that pipeline connectivity would be completed by 2012 end," he said.
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