Calls for regulator for fixing petro-prod prices
New Delhi, Jan 17: Minister of State in Prime Minister's Office Prithviraj Chavan today called for setting up a regulatory authority to determine prices of petroleum products and providing subsidies only to the poor.
''We need to move from the current system of pricing. There is a need for more transparent mechanism. The prices should be determined by an autonomous authority instead of the petroleum ministry so that it does not become a politicised subject,'' Mr Chavan said.
There has to be a regulator like the power sector, which should decide the prices.
''There is no reason the subsidy of Rs 150 per cooking gas cylinder be given to everyone. It should be better targeted towards the poor. Let the cylinder prices float, like other products,'' Mr Chavan added.
There can be other innovative pricing systems, like the dual price mechansim for lifeline fuels. It is viable in case of LPG as it is a more organised trade, the minister added.
The statement comes just two days after Petroleum Minister Murli Deora's assurance that subsidy on lifeline fuels will stay even after the March 31 deadline.
UNI