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Will there be an increase in price of diesel by `2 or `3 per litre?  

Centre likely to increase diesel price by `2 a litre


New Delhi: The empowered group of ministers (EGoM) will meet by the end of this month to consider a hike in the price of diesel and LPG in view of a surge in the prices of international crude oil.“We are hopeful of an EGoM meeting soon. Hopefully, it will meet before month end,” said the petroleum secretary, Mr S. Sundareshan. The EGoM is headed by the Union finance minister, Mr Pranab Mukherjee.

The petroleum secretary said that in view of a spurt in international crude oil prices, there was a need to review diesel and LPG prices in India. However, he refused to comment as to the quantum of price hike, which the EGoM will decide. “The agenda of the meeting will be finalised a day before the meeting,” he said.

While the loss on the sale of diesel has jumped to `6 per litre, the government is unlikely to pass the whole underrecovery to the subscribers. The government is likely to increase the price of diesel by `2 or `3 per litre.

In June, at the time of deregulating petrol prices, the government had said that it will be deregulating diesel prices in due course. Sources, however, said that in current situation deregulation of diesel prices is not possible.

Three state-run oil marketing companies (OMCs) IOC, BPCL and HPCL incur a loss of `275 on every domestic 14.2 kg LPG cylinder. Due to the under recoveries, OMCs are likely to lose `65,000 crore in the current fiscal. Courtesy:DECCAN CHRONICLE

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