The Hindu : National : Decision on oil price hike deferred

Online edition of India's National Newspaper
Friday, May 27, 2005

National

National

Decision on oil price hike deferred

Special Correspondent

NEW DELHI: The Centre has decided to defer a decision on the proposed hike in petrol and diesel prices till early next week.

Speaking to reporters after a meeting of the Cabinet and the Cabinet Committee on Economic Affairs, Union Finance Minister P. Chidambram said the issue was also discussed at a meeting called by Prime Minister Manmohan Singh.

The meeting attended by him and Petroleum Minister Mani Shanker Aiyar examined a number of options.

He had made suggestions and asked the Petroleum Ministry to consider them.

He said they would come back "early next week" on these proposals.

The Petroleum Ministry has sought a hike in the prices of petrol and diesel in line with the taxation changes made in the budget.

It has suggested an increase of Rs. 2.50 per litre in petrol and Rs. 1.30 per litre in diesel prices while asking oil companies to take on the burden of the high global crude oil prices.

Sources said there was near unanimity that the increased incidence of excise duty on petrol and diesel, the hike in road cess and the marginal cost of supplying cleaner fuel be passed on to consumers, while the oil companies bear the rise in cost due to spike in international prices.

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