With members of alliance partners not present in Delhi, the United Progressive Alliance (UPA) has found it difficult to fix a date for the key meeting of the Empowered Group of Ministers (EGoM) on fuel prices. The panel of ministers is expected to decide on a hike in diesel, kerosene and LPG prices.
While Agriculture Minister Sharad Pawar is on a month-long Europe trip, Chemicals and Fertilizers Minister M K Alagiri is camping in Tamil Nadu following his party’s ouster in the recent assembly elections.
A date was fixed last month, but Pawar and Alagiri’s absence forced the finance ministry to defer the meeting. Another alliance party member, former railways minister Mamata Banerjee’s presence is no more required as she is the chief minister of West Bengal.
Meanwhile, wholesale price index (WPI) inflation has shot up to 9.06 per cent in May from 8.66 per cent in April. An increase in price of diesel, though crucial for the oil companies, is set to fuel the inflation further.
The finance ministry wants to hold the meeting after ensuring Pawar and Alagiri is present. Congress managers want to take a “collective decision” on the sensitive issue of price hike in diesel and other petro products. If Pawar and Alagiri are part of the decision-making process, the two key allies will not be able to make noises about the “harsh” economic decision, a ministry official said.
