Monday, June 7, 2010

Oil ministry wants gradual fuel reform

Oil ministry

The oil ministry in favor of a gradual relaxation of controls on fuel, starting with a rapid increase in gasoline prices to cut aid without risking higher inflation, three sources in the federal petroleum ministry said.

It also wants a small increase in the price of kerosene used for lighting of the poor, and cooking gas.

India's fuel pricing system is scheduled to be considered at 1630 hours (1100 GMT) by a panel of ministers headed by Finance Minister Pranab Mukherjee.

The oil industry officials say a move to market prices could increase gasoline prices by 7 percent and diesel by about 9 percent.

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