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EGoM to review fuel price hike

June 24, 2011 - New Delhi

The Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee will meet here at 7:30 p.m. today to review diesel and domestic LPG prices.

The meeting could lead to a diesel price hike, which was last revised in June 2010 by Rs. 2.

A hike of Rs. 2-3 per litre in diesel prices and an increase of at least Rs. 25 per domestic LPG cylinder are on the EGoM agenda. It may also consider raising kerosene prices.

The EGoM may also consider lowering customs or import duty on crude oil to zero from the current 5 per cent, and on diesel from 7.5 per cent to 2.5 per cent.

According to sources, the ministry also wants a cut in Rs. 4.60 per litre central excise duty levied on diesel to moderate the impact of high crude oil prices.

The EGoM is taking place for the first time since June last year. According to official estimates, the public sector oil companies are currently losing 490 crore rupees per day on sale of petrol and diesel, kerosene and LPG cylinder at current prices.


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