Fuel price is likely to increase which includes petrol and cooking gas cylinders. The Kirit Parikh committee was supposed to deliver a report on fuel price policy as reported by Petroleum Minister Murli Deora.

 

This matter will mainly depend on how Prime Minister, Manmohan Singh’s cabinet deals with it. A petroleum ministry official said, "It is learnt that Parikh committee wants to completely free diesel and petrol pricing,"

 

It has been reported that if the Parikh committee proposal is applied then the cost of petrol which is normally Rs 44.72 per litre in New Delhi will be increased by Rs.4. A government official also reported that government-subsidised prices for cooking gas should be confined to six cylinders per family in a year. If a family requires additional cooking gas then they have to pay double the price for it.

 

Sources from the petroleum minister said that the final decision on the Parikh committee proposal will be implemented on February 26 or in March.

 

A senior government official said diesel prices cannot be completely freed from government control as it is directly related to inflation. Price rise in diesel is directly related to every citizen of India through transport and also industry thereby, it is related to every essential commodity.