The government may find it easier to decontrol the prices of petrol and diesel from next week, with softening global rates requiring an increase of merely Rs 3.50 a litre.
An EGoM headed by finance minister Pranab Mukherjee is due to meet on Monday to consider the Kirit Parikh Committee’s recommendations, which include freeing of petrol and diesel prices from government control, besides steep hikes in LPG and kerosene rates to cut fuel subsidies.
To free petrol from government control, the GoM will have to raise its price by Rs 3.35 per litre and of diesel by Rs 3.49 a litre. Petrol now costs Rs 47.93 a litre in New Delhi, and diesel Rs 38.10.
International crude prices have shaved off over $10 per barrel to bring them down to $72-74 a barrel. India’s oil marketing companies sell petrol at a loss of Rs 3.35 a litre, while for diesel they incur a loss of Rs 3.49 per litre.