PM to discuss petro pricing with FM, Deora

Prime Minister Manmohan Singh will convene a meeting with finance minister P Chidambaram and petroleum minister Murli Deora shortly to discuss pricing of petrol, diesel, LPG and kerosene.

"I met the Prime Minister this morning for finding a way of not raising prices of LPG and kerosene. The Prime minister said he will convene a meeting with the finance minister soon for solutions," Deora said today.

The government's ban on raising fuel prices despite rise in raw material (crude oil) cost has resulted in public sector fuel retailers - Indian Oil Corporation, Bharat Petroleum Corporation, IBP and Hindustan Petroleum Corporation - posting a net loss of Rs 2,898 crore till now in the current fiscal.

"I am not in favour of raising LPG and kerosene prices as the fuels are used by poor and vulnerable sections of the society. We need to see how, through duty adjustments, raising government subsidy and issuance of oil bonds for the unrecovered cost, the financial health of oil PSUs can be restored," he said but did not indicate when the meeting will take place.

Asked if he agreed with the recommendation of the C Rangarajan committee, appointed by the Prime Minister to look into the fuel pricing policy, to raise the petrol price by Rs 1.27 a litre and diesel by Rs 2.18 per litre, Deora said: "We have requested the committee to submit its report to us by this week. I cannot say if auto fuel prices would rise or not."