India likely to review auto fuel pricing policy on 13 January

The government is likely to deliberate on the issue of freeing auto fuels prices from government control at a meeting convened by prime minister Manmohan Singh on 13 January.

Petroleum minister Murli Deora and finance minister Pranab Mukherjee and officials of state-run oil marketing companies will participate in the deliberations.

Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Coporation (BPCL), Oil India Ltd (OIL) and Gas Authority of India Ltd (GAIL) are expected to be represented at the meeting, which is being convened to take stock of the financial position oil PSUs.

Planning Commission deputy chairman Montek Singh Ahluwalia and former Planning Commission member Kirit S Parikh, who heads an expert committee on fuel pricing, may join the deliberations, official sources said.

Petroleum minister Murli Deora had recently sought the prime minister's intervention for immediate release of oil bonds worth Rs20,872 crore to partially compensate the public sector oil marketing companies for selling fuels below market price during the three quarters of the current fiscal.

PSU oil marketing companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum are expected to end the current fiscal with combined loss of around Rs45,000 crore on selling petrol, diesel, domestic LPG and kerosene at rates below cost.