Govt approaches key allies on the issue of fuel price hike
merisarkar news service
New Delhi, February 10, 2010
Tough time in convincing the allies
The Union Cabinet is likely to discuss on Thursday a Petroleum Ministry proposal for freeing petrol prices from government control and a moderate increase in diesel, cooking gas and kerosene rates.
Petroleum and Natural Gas Minister Murli Deora held consultations with key allies DMK and Trinamool Congress on the subject ahead of this crucial meet.
Murli Deora met telecom minister and DM leader A Raja on Wednesday morning and spoke to Mamata Banerjee over the phone.
He explained the situation of oil companies and trends in global crude oild market to these two key allies and said that it would be difficult for public sector oil marketing companies to carry on with the current prices.
Reports say that both the leaders were noncommittal on the stand that their parties may take if the proposal of freeing petrol prices comes before Cabinet on Thursday.
If the proposal is approved by the cabinet then it may lead to an increase of four to five rupees per litre in petrol prices.
Oil minister Deora had already droped the proposal on freeing diesel prices that would have resulted in rates going up by Rs 2.33 a litre.
However, there is now a move to hike diesel rates by at least Re one a litre.
