Amid nationwide outrage over the Rs 7/litre hike in petrol prices, Petroleum Minister S Jaipal Reddy on Monday made it clear that the government is not considering raising the prices of diesel, LPG or kerosene in the immediate future.
Speaking to reporters after meeting Finance Minister Pranab Mukherjee to discuss the impact of fule prices on inflation, Reddy said, “…not going to touch the price of LPG, diesel and kerosene, full stop.”
Reddy’s categorical assertion against a further hike in fuel prices comes at a time when the Congress has been finding it difficult to manage the political fallout of the steep hike in petrol prices.
By disclosing that no dates have yet been fixed for convening a meeting of the Empowered Group of Ministers (EGoM) on fuel prices, Reddy has indicated that the party is in a fire fighting mode.
The government is believed to be buying time to let flared tempers cool before calling the meeting of the EGoM where the Congress party’s ruling allies TMC and DMK are also represented. Both TMC and DMK have held street protests against the hike in petrol price.
The EGoM on fuel prices, headed by Mukherjee, hasn’t met since June last year even though depreciation in the rupee and rise in international oil prices has raised the cost of imports.
“It was only a meeting of the inter-ministerial group to look at the question of inflation. I was requested to come and offer my insights before they finalise their group recommendations,” Reddy said.
“I focused on the price of diesel and its impact on inflation as a whole,” he said without elaborating. “No date has been fixed for EGoM on diesel price deregulation.”
The EGoM had in June 2010 taken an in-principle decision to deregulate or decontrol diesel prices but its implementation was deferred.
–Agencies