GoM to look into fuel price hike

PM IN SINGAPORE

Prime Minister Manmohan Singh today said a group of ministers (GoM) had been constituted to look into a hike in retail prices of fuel in the wake of a spurt in global crude oil prices.

"The Cabinet did discuss this matter. I have appointed a GoM to report back to the Cabinet within one month," he told reporters on way to Singapore. He, however, did not say when the Cabinet discussed the issue and who would head the GoM.

In New Delhi, a senior petroleum ministry official said the ministry had not received any communique on the GoM. "In all probability, it will be headed by External Affairs Minister Pranab Mukherjee," he said.

Public sector oil marketing firms Indian Oil, Bharat Petroleum and Hindustan Petroleum are together losing over Rs 250 crore per day on sale of petrol, diesel, domestic cooking gas and kerosene as they have not been allowed to raise retail prices.

An industry official said setting up a GoM on the issue was necessary as there was no unanimity on raising fuel prices.