An Empowered Group of Ministers may meet next week to consider raising petrol and diesel prices by INR 2 to INR 4 per liter and domestic LPG rates by up to INR 25 per cylinder.

Mr Murli Deora petroleum minister said that “I was trying for the EGoM meeting on Thursday after the usual meeting of the Cabinet. But the meeting could not be fixed for Thursday because of prior commitments.”

The ministerial panel is now likely to meet next week, possibility on June 24 or 25. Mr Deora said that “We are trying for a meeting next week refusing to discuss possible outcome or agenda before the EGoM.

Petrol price will go up INR 3.73 a liter on aligning the domestic prices with international rates. In case of diesel, the proposal is to give oil firms freedom to price the auto fuel only till such time that international crude oil rates stay below USD 90 per barrel.

If consensus at the EGoM is against even giving limited freedom to oil companies, then the government may settle for INR 2 per liter hike and try to build consensus for freeing the fuel around Budget time in 2011.

Also on the cards is an INR 25 per cylinder hike in domestic cooking gas rates in an effort to align retail prices closer to their cost.

The EGoM headed by Mr Pranab Mukherjee finance minister could not reach a decision at its first meeting on June 7 as key members like railway minister and agriculture minister.

(Sourced from IRIS)