OilMin for deregulating fuel prices

Unmindful of opposition within the ruling coalition, the petroleum ministry is pushing for freeing of petrol and diesel prices from government control along with a marginal hike in domestic LPG and kerosene rates. Finance Minister Pranab Mukherjee is also believed to be in favour of decontrolling auto fuel prices to limit the government’s subsidy outgo, but a decision is unlikely in the next 7-10 days as UPA managers build political consensus on the issue, an oil ministry official said. The Union Budget may provide pointers towards deregulation of prices as petrol and diesel rates would be revised every month based on average international price of the last 30 days.