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EGoM meeting on petrol price : Fuel price hike

An Empowered Group of Ministers (EGoM) meeting on petrol price or Fuel price hike decided to implement and this EGoM will meet here on June 25 to consider possible freeing of petrol prices from government control and marginally hiking diesel prices.

For the second time in less than three weeks, the Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee met today to approve market driven increase in petrol prices and the Petrol price will go up Rs 3.73 a litre if the domestic prices are aligned with international rates. Petrol in Delhi currently costs Rs 47.93 per litre and diesel prices of about Rs 2 a litre.

“Friday is the meeting of EGoM,” petroleum minister Murli Deora refused to spell out the agenda.

Domestic retail prices of petrol and diesel are benchmarked at close to US $60 per barrel crude oil price, while the global rates currently are over US $77 a barrel.

Deora has already asked states to lower sales tax on petrol and diesel to cushion consumers from the impact of fuel price hike, if any.

“A rise in the international oil prices exerts an upward pressure on domestic prices of petroleum products,” he wrote to states. “Ad valorem rates of VAT imposed by the state government further aggravates the impact of international oil prices on the consumers.”
An Empowered Group of Ministers (EGoM) meeting on petrol price or Fuel price hike decided to implement and this EGoM will meet here on June 25 to consider possible freeing of petrol prices from government control and marginally hiking diesel prices.

For the second time in less than three weeks, the Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee met today to approve market driven increase in petrol prices and the Petrol price will go up Rs 3.73 a litre if the domestic prices are aligned with international rates. Petrol in Delhi currently costs Rs 47.93 per litre and diesel prices of about Rs 2 a litre.

“Friday is the meeting of EGoM,” petroleum minister Murli Deora refused to spell out the agenda.

Domestic retail prices of petrol and diesel are benchmarked at close to US $60 per barrel crude oil price, while the global rates currently are over US $77 a barrel.

Deora has already asked states to lower sales tax on petrol and diesel to cushion consumers from the impact of fuel price hike, if any.

“A rise in the international oil prices exerts an upward pressure on domestic prices of petroleum products,” he wrote to states. “Ad valorem rates of VAT imposed by the state government further aggravates the impact of international oil prices on the consumers.”

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Author: ih

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