Panel suggests freeing petrol, diesel prices; hike in kerosene, LPG prices

Kirit Parikh

The Kirit Parikh Committee set up by the government to recommend a fuel pricing policy for the country has recommended lifting government control over petrol prices at both the refinery and retail levels.

In its report submitted today, the committee also recommended that retail diesel prices be market driven besides a sharp rise in the prices of cooking gas and kerosene.

The committee has recommended a Rs100 increase in the price of LPG per cylinder and Rs6 per litre of kerosene.

While the petroleum ministry is in favour of deregulating petrol, the final call will be taken by the prime minister after considering other factors like inflation and political concerns.

At a joint press conference with petroleum minister Murli Deora, Parikh said the government need to overhaul its subsidy-driven fuel pricing policy to help the petroleum industry stay competitive.

State-run oil marketing companies are suffering a loss of Rs3 per litre of petrol being sold, Parikh pointed out while suggesting, "diesel price has to be decided by the market."