EGoM on fuel prices put off again

The much-awaited meeting of the Empowered Group of Ministers (EGoM) on fuel prices, which was to take place on June 9, was cancelled, according to media reports. The EGoM on fuel prices was expected to announce an increase in diesel and LPG prices. However, with the international oil prices having moderated in recent days it will be interesting to see how much is the eventual hike in diesel and LPG prices. The state-run oil marketing companies (OMCs) on May 14th hiked petrol prices by Rs. 5 per litre. Petrol was de-regulated in June last year but the other petroleum products like diesel, LPG and kerosene are yet to be made market linked. Separately, media reports said that the Government could restore the share of the upstream oil & gas companies in the annual subsidy to 33%. It may be recalled that just recently, the overall oil subsidy payout for the public sector upstream companies was hiked to 38.7% for the fiscal year ended March 2011.