The Hindu : National : Panel for monthly hike in fuel prices

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Tuesday, Aug 12, 2008
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Panel for monthly hike in fuel prices

Sujay Mehdudia

NEW DELHI: The Chaturvedi Committee, appointed by Prime Minister Manmohan Singh, has recommended monthly hike in prices of petrol and diesel, restricting and phasing out subsidy on LPG cylinders, imposition of “Metro Extra” tax in 11 cities and reduction in excise duty on petrol.

The committee, headed by Planning Commission member B.K. Chaturvedi, had been asked by the Prime Minister to look into the financial position of the Oil Marketing Companies (OMCs), the overall working of the petroleum sector and related issues of pricing and subsidy.

“We have received the Chaturvedi panel report and we are looking into it. The report will be discussed at the highest level. It is still being debated. I have not gone through the entire report and I am not in a position to comment on what all it contains,” Petroleum and Natural Gas Minister Murli Deora said when asked about the proposals.

The committee has asked the Prime Minister to raise petrol prices by Rs.2.50 a litre per month till March 2009 and diesel price by 75 paise per litre till 2010 to eliminate subsidies on the two fuels.

The committee has suggested restricting LPG cylinders sold at subsidised rates to six per connection in a year and phasing out the entire subsidy component over a three-year period.

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