Centre may hike prices of fuel today

Indications from various sources are mixed about the possible outcome of the much awaited meeting of the empowered group of ministers (EGoM) led by finance minister, Mr Pranab Mukherjee on Monday.

While the three major oil refining companies and the ministry of oil and natural gas are certain that there could be deregulation of petrol prices immediately there is a strong view that the EGoM may not take any immediate decision on implementing the recommendations of the Kirit Parikh Committee.

Monday’s meeting will be a preliminary meeting to discuss the pros and cons of the recommendations in detail, they say. This section believes that this is not an opportune time to deregulate petrol and diesel prices, particularly when inflation is still high.

They will also have the freshly minted heroine Mamata Banerjee to contend with as she is part of the EGoM.

The Kirit Parikh Committee had recommended immediate deregulation in the price of petrol as it would not have a cascading affect on prices of commodities.