EGoM to discuss decontrol of fuel pricing today

Following the gas price hike, analysts say the government appears to be setting the stage for increasing fuel prices too with the Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee set to meet today.

On the agenda are a number of contentious issues like a free-price regime for diesel and petrol pricing to deal with the loss of revenue from sale of LPG and kerosene below cost.

Kirit Parikh, the author of the Parikh Committee report, is optimistic the empowered group on fuel prices will deregulate the marketing of petrol and diesel at the meeting to he held today.

''If they free the market price of petrol and diesel-that would be a significant.''

Meanwhile RS Sharma, chairman and managing director of ONGC too, is quite hopeful of a positive outcome on the pricing front.

According to Sharma, the oil companies are not averse to subsidy sharing but are pushing for a transparent mechanism. Sharma sees evidence of a higher degree of seriousness on the issue from policy makers. He says that the ad hoc nature of the subsidy sharing has to make way for a more rational and transparent mechanism.