Govt to view Chaturvedi panel recommendations

Government will take a view on recommendations of the B K Chaturvedi Committee in next few months, Petrol Minister Murli Deora said today.     

"We will take a view in due course, he told reporters after brainstorming meeting with oil companies CEOs here.     

Some of the recommendations like shift in methodology for calculating fuel prices have been opposed by the oil industry and the Petrol Ministry would now invite comments from the stakeholders before taking a decision on the report.     

Oil Ministry has forwarded a preliminary report to the Prime Minister's Office saying raising petrol prices by Rs 2.50 a litre per month till March 2009 and diesel by Rs 0.75 per litre till 2010 was not possible, official sources said.     

The Ministry has also rejected the Committee's call for pricing fuel at export parity rates, saying it would result in refineries losing around Rs 27,600 crore in revenues.      Also, suggestions for reducing import duty on petrol and diesel to zero were not accepted as it would reduce duty protection to the domestic refineries vis-a-vis international refiners.     

However, the Ministry was favourably inclined to the proposal for levying a Special Oil Tax on oil produced from fields awarded prior to the advent of New Exploration Licensing Policy (Nelp) in 1999.     

It favoured stripping state-run firms like ONGC of any gains above $75 a barrel, and taxing private companies like Cairn at 40 per cent over this benchmark rate.      This would help meet the revenue loss on sale of petrol, diesel, kerosene and LPG, sources said.