Kirit Parikh panel on EPP of petro products to meet today

Kirit Parikh Panel is expected to meet today to discuss the export parity pricing (EPP) of petro products, reports CNBC-TV18’s Nayantara Rai quoting sources.

It is learnt that the finance ministry is in favour of rolling out the EPP regime as it would help the government to reduce its subsidy burden. But oil marketing companies (OMCs) fear that switching to the EPP model will not be financially viable making them sick. Also, retaining foreign direct investment (FDI) would become difficult. The panel is also likely to decide on subsidy sharing formula. The Kirit Parikh Committee would be looking at the needs of all stakeholders before committing to the new mechanism of fixing oil product prices. Parikh, who heads the committee had earlier told CNBC-TV18 when the market is competitive and there are enough players and consumers, trade parity price is the logical way to go .