New Delhi, March 23: Calling the present fuel pricing system “fundamentally unviable”, Planning Commission today advocated freeing petrol and diesel prices from government control, a move that will result in prices going up by Rs 4-6 per litre.
Planning Commission Deputy Chairman Montek Singh Ahluwalia, in a presentation to the full Planning Commission chaired by Prime Minister, said: “The present system of pricing petroleum products is fundamentally unviable.”
The government does not allow state-owned fuel retailers to raise petrol, diesel, domestic LPG and kerosene prices in line with cost to keep inflation under check. It has an ad-hoc system of compensating losses incurred by the companies on this count.
“Petroleum products pricing has to be decontrolled as recommended by the (Kirit) Parikh Committee,” he said.
–Agencies