The government will review retail prices of petroleum products on September 1.
“The decision on granting pricing autonomy on oil products will be conveyed to the oil marketing companies within two to three days. As and when the oil marketing companies feel the need to review prices, they will be free to consider the issue and take a decision collectively,” Petroleum Secretary MS Srinivasan said.
He also said it was better to take a consolidated look at prices every one to two months, instead of reviewing the prices every fortnight. The ministry also plans to announce the gas pipeline policy by September 1.
A lot of companies have evinced interest for setting up gas pipeline networks in cities.
Meanwhile, C Rangarajan, chairman of the Prime Minister's Economic Advisory Council, suggested that oil prices should move away from the existing import parity pricing model and settle at the export parity price level.
Rangarajan, who headed a committee set up by the government to make recommendations on the pricing and taxation of petroleum products, had earlier made the same proposals to fix oil prices through the trade parity pricing mechanism.
Govt to review petroleum product prices on Sept 1
Our Economy Bureau / New Delhi Aug 19, 2006, 00:20 IST
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