The Hindu : Business : All Chaturvedi panel proposals cannot be implemented: Deora

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All Chaturvedi panel proposals cannot be implemented: Deora

Sujay Mehdudia

NEW DELHI: Petroleum and Natural Gas Minister Murli Deora on Wednesday said some recommendations of the B.K. Chaturvedi committee could not be implemented and he had convened a meeting of senior officials, including heads of oil marketing companies, to discuss the panel’s report on August 19.

Talking to newsmen here, Mr. Deora said: “I have been informed that a number of recommendations of the committee can be implemented, while some others would be difficult to execute.”

The Minister said a meeting of heads of the Oil Marketing Companies (OMCs) had been convened next week to discuss diesel shortage in various parts of the country, including Maharashtra, Gujarat, Karnataka and the adjoining regions.

The Chaturvedi Committee had recommended raising the petrol price by Rs.2.50 a litre a month till March 2009 and that of diesel by Rs.0.75 till 2010 to eliminate subsidies on the two fuels.

The committee had also suggested temporary duty changes and the method of calculating retail selling price of fuel.

The report had been forwarded to the Prime Minister’s Office (PMO).

The three-member panel had proposed levying a “Metro Extra Tax” of Rs.2 a litre on diesel in four instalments in large cities where expensive cars used large amounts of fuel.

“I had some discussions on the recommendations on Tuesday but there is a need to do a thorough analysis before arriving at any conclusion,” Mr. Deora said.

While the government may reject the suggestion of a monthly hike in fuel prices, it may accept the suggestion of pricing domestic fuel at export parity rates.

The panel sought to lower the benchmark used for domestic retail pricing by 10-15 per cent by shifting from the current principle of trade parity pricing.

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