Bangalore, Aug 20: With general elections ahead (April/May), the government expressed its decision of not implementing the recommendation of the high-power B K Chaturvedi committee to surge petrol and diesel prices at regular intervals till the cost prices are reached. The report on oil pricing by the Prime Minister-appointed committee has recommended raising petrol prices by Rs 2.50/litre every month till March 2009 and diesel by Rs 0.75 till 2010 to bring them on par with cost prices.
Petroleum Minister Murli Deora has taken a stand of not rushing with the idea of raising prices of petroleum products at regular intervals, after having discussed the committee recommendations with the chief executives of the public sector undertakings in the petroleum sector.
The current decline in the global crude oil prices and with the elections ahead, the UPA government is not willing to increase the oil prices. Moreover, with the current inflation, retail oil prices have reached a 13 year high of 12.44 per cent.