Govt panel to meet on fuel prices on June 25 - Deora

NEW DELHI Tue Jun 22, 2010 1:39pm IST

A worker holds a fuel nozzle at a petrol pump in Hyderabad June 17, 2010. A panel of ministers will meet on Friday to decide on fuel prices, Oil Minister Murli Deora said on Tuesday.  REUTERS/Krishnendu Halder

A worker holds a fuel nozzle at a petrol pump in Hyderabad June 17, 2010. A panel of ministers will meet on Friday to decide on fuel prices, Oil Minister Murli Deora said on Tuesday.

Credit: Reuters/Krishnendu Halder

Related Topics

Stocks

   
Polluted waters of China

Polluted waters of China

Growing cities, overuse of fertilizers, and factory wastewater have degraded China's water supplies to the extent that half the nation's rivers and lakes are severely polluted.  Slideshow 

NEW DELHI (Reuters) - A panel of ministers will meet on Friday to decide on fuel prices, Oil Minister Murli Deora said on Tuesday.

"There is a meeting on June 25 on fuel prices. I cannot say whether prices will be hiked, but the meeting is on," Deora told Reuters.

A Press Trust of India report said a government panel will consider decontrol of petrol prices at the meeting.

Earlier this month, the government deferred a decision on raising fuel prices, the second time in a year it has tripped on pushing the politically sensitive reform measures that could help trim a budget deficit.

Shares of oil marketing companies Indian Oil Corp(IOC.BO), Bharat Petroleum Corp(BPCL.BO) and Hindustan Petroleum Corp(HPCL.BO) rose between 2.7 and 3 percent on the news.

With wholesale price inflation in May breaching the double digit mark at 10.16 percent, the move could put upward pressure on the headline inflation rate and on the Indian central bank to aggressively tighten monetary policy.

Prime Minister Manmohan Singh has said that headline inflation could come down to between 5 percent and 6 percent by December.

However, a rise in fuel prices, with food prices still high, could upset those calculations.

The ministerial panel is expected to ask state governments to lower state-level taxes on petroleum products to cushion the blow from a possible price hike.

"One of the points of discussion will be higher taxes by state governments. They should reduce it ... at least on kerosene," Deora said.

(Editing by Unnikrishnan Nair)

(For more business news on Reuters India click in.reuters.com)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Infrastructure

REUTERS SHOWCASE

Big Infra Deal

Big Infra Deal

Piramal, Dutch APG tie up for $1 bln infra investment  Full Article 

L&T Slumps

L&T Slumps

L&T earnings raise 'multiple red flags' - Citi  Full Article 

Twitter Results

Twitter Results

Twitter assuages growth concerns for now as shares soar 35 percent  Full Article 

Auto Sector

Auto Sector

VW closes in on Toyota as global auto leader  Full Article 

E-Commerce

E-Commerce

Amazon says to invest $2 billion more in India   Full Article 

Fed Meeting

Fed Meeting

Fed seen trimming bond buys, could offer vague rate clues  Full Article 

Gaza Conflict

Gaza Conflict

Israel strikes house of Hamas Gaza leader, digs in for long fight.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage