Petrol, Diesel and aviation fuel to cost more

New Delhi, Jun 4 (UNI) The long pending demand for a fresh hike in petroleum products by the oil companies is expected to be partly met when the Union Cabinet will meet here this week to settle the issue.

According to Petroleum Ministy sources, after much deliberations with all concerned parties the Government has virtually decided to rise the prices of petrol and diesel by Rs 2/3 per litre, while a hike of around Rs 5 per liter on Aviation Turbine Fuel is expected to be announced either on Thursday or Friday.

The oil companies were asking for a steep hike in the prices of petrol, diesel, kerosene, LPG and aviation fuel But it is been decided that for the time being the prices of LPG and Kerosene will not be hiked as these two products were being identified as the common man's items.

Even the UPA Chairperson Sonia Gandhi and the Left parties have asked the Government for not increasing the prices of Kerosene and LPG as it would adversely affect the household economy.

The parties, the biggest UPA supporting block from outside the Government, have alsp been pressing the Government to set up of a National safety fund, by utilising a portion of the fund raised by imposing cess on crude oils, as per the recommendations of the report of the Parliamentary Standing Committee on Petroleum.

Union Petroleum and Natural Gas Minister Murli Deora held two rounds of meetings with the Finance Minister P Chidambaram to convince him for setting up of the fund and rationalisation of duty structure to minimise the impact of price hike on the general public.

Mr Deora also had meetings with the Prime Minister Dr Manmohan Singh to discuss the effect of any sharp hike in the prices of petroleum products on the economy.

UNI BKS CS HT1230