Friday meet may not see hike in petro prices

Petroleum product prices are unlikely to be hiked at the upcoming meeting on price review of petroleum products on September 1.

The review meetings bring together government and government-owned oil marketing companies, who bear the brunt of high oil prices at their end, but are forced to sell at low prices to consumers.

The spurt in global crude oil prices warrant a Rs 6.31 hike in a litre of petrol, Rs 8.25 in diesel, Rs 18.69 per in kerosene and Rs 166 per cylinder of LPG. Oil-marketing companies were last allowed to increase retail price of petro products in June, this year.

Though crude prices have firmed up since, political sensitivities to increasing price of petro products is expected to see a status quo-ist approach being adopted.

Meanwhile, a senior petroleum ministry official has said that the petroleum ministry wants to schedule price review meetings every thr ee months rather than the current practice of monthly meetings.

The ministry proposal rides on requests from state governments who felt that a review four times a year would be more "convenient". After all, no one would like to see revised bus tariffs every month, but they can be better absorbed if done every three months.

The petroleum ministry has also asked the finance ministry to reduce excise duty on petroleum products.