Government will consider deregulating petrol and diesel prices as also increasing rates of natural gas sold by state firms, said Murli Deora, who began his second term as Petroleum Minister today.
"The issue of deregulation is being discussed and it will be put up to the Cabinet for a decision," he said after taking charge of the Petroleum Ministry.
Asked about the time-frame during which the decision is likely, he said: "In about six weeks."
Jitin Prasada, one of the young turks of Congress, also took over as Minister of State for Petroleum.
Separate draft Cabinet notes are ready for giving state- run IndianOil, Bharat Petroleum and Hindustan Petroleum freedom to fix petrol and diesel prices when crude oil rates are below $75 a barrel and raising rates of natural gas produced by Oil and Natural Gas Corp (ONGC) and Oil India Ltd from fields given to them on a nomination basis.
Deora, who became the first person-ever to get reappointed as Petroleum Minister, will introduce a rural LPG distributorship in the first 100 days.
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"At present, 9,350 LPG agencies cover only 50 per cent of the population and we want to extend the coverage to every nook and corner," he said. "The Gramin LPG Vitrak scheme would be launched at locations having potential of up to 1,000 refills per month."
In his second stint, maybe he will finally usher in reforms in auto fuel pricing, taking advantage of low crude oil prices.
Once deregulated, fuel retailers will get to fix petrol and diesel prices periodically -- maybe fortnight or once a month.
Also on Deora's menu is raising rates of natural gas produced by state-run firms like ONGC which is losing about Rs 2,500 crore annually on selling the fuel at artificially subdued rates. "Gas will follow fuel prices," he said.
But his first priority would be get the 8th round of auction of oil and gas exploration blocks on track by getting tax holiday for natural gas production. The round had been suspended because of concerns of investor backlash in the absence of a seven-year income tax holiday.
"We hope to relaunch NELP-8 in a month's time," Deora said. Reviving the initial public offering of the nation's second largest exploration firm, Oil India, would also be high on agenda.
Industrialist-politician Murli Deora broke the jinx at one of the country's wealthiest ministries by being reappointed as Minister for Petroleum and Natural Gas.
The Ministry has a history of no minister ever returning to office and none ever completing a five-year term.
The BJP's Ram Naik has so far been the longest-serving Oil Minister, having been at the helm for four and a half years during 1999-2004.