Moneycontrol
May 10, 2011 08:30 PM IST | Source: CNBC-TV18

Sporadic price hike in petrol likely tomorrow: Kirit Parekh

Kirit Parekh, author of the report on fuel price deregulation, expects to see a fuel price coming out of tomorrow's EGoM meet.


Kirit Parekh, author of the report on fuel price deregulation, expects to see a fuel price hike coming out of Wednesday's Empowered Group of Ministers (EGoM) meet. "There could be a sporadic price hike in petrol tomorrow," he said adding, "There is also a possibility of some reduction in duties on diesel."


The EGoM chaired by Finance Minister Pranab Mukherjee will be meeting to discuss the health of the state-owned oil marketing companies.


Besides discussing a hike in diesel prices, and reverting to the deregulated price regime for petrol, the EGoM will also discuss how the oil marketing companies (OMCs) balance sheet can be cleaned up once and for all by rolling out a comprehensive reform agenda for LPG and kerosene.

There could also be a cap on the number of cylinders that are available to beneficiaries at the subsidised rate. According to Parekh limiting the number of cylinders will be difficult to implement.

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