Deora says need to raise fuel prices

Oil Minister Murli Deora said on Monday the government should raise state-set fuel prices as retailing firms were suffering losses.

The fuel pricing system is scheduled to be reviewed at 4:30 p.m. (1100 GMT) by a panel of ministers led by Finance Minister Pranab Mukherjee.

Deora did not say what the panel may decide. Montek Singh Ahluwalia reiterates Deputy chairman of Planning Commission Montek Singh Ahluwalia said on Monday that state-controlled fuel prices must be increased.

"For six months I have been saying we should; I haven't changed my mind," said Ahluwalia when asked if the time was right to increase fuel prices.

A panel of ministers, including Ahluwalia, will later on Monday debate the political hot potato of reviewing the way it prices motor and cooking fuel prices, seeking a way to improve its financial health even as it tries to shield its 1.2 billion citizens from high inflation.

The April annual wholesale price inflation was at 9.59 per cent.

Posted in: Business News