India to consider fuel price deregulation proposal

New Delhi, Feb 4 (ANI): Petroleum Minister Murli Deora has said that the Central Government would shortly consider a proposal to deregulate fuel prices.

"We will see and discuss this report that how best it will be implemented, when it goes to the cabinet. Then the cabinet will decide," Deora told reporters after Kirit Parikh, head of the panel on oil prices, submitted its report to the government here on Wednesday.

However Parikh said it is good time to free prices because the petrol and diesel prices increases will be very low. This could result in an increase of three rupees per liter each for petrol and diesel.

"We have not overlooked the ongoing inflation in the country. I have made it clear that when the prices of petrol and crude oil increases in the international market, and since we import 80 percent of petrol and crude oil from outside, so the price rise is expected. Someone has to bear the burden if such steps are not taken," he added.

The committee also suggest a transparent and effective distribution system for PDS kerosene and domestic LPG can be ensured through smart cards. Until that becomes operations, kerosene allocation across states should be rationalized which would bring down all-India allocation by at least 20 per cent.

The Parikh Committee is India's third such panel set up to fix anomalies in the fuel pricing system in the energy-hungry nation. (ANI)