EGoM on fuel price to meet shortly: Gopalan

Concerned over the impact of rising fuel subsidy on government finances, the Finance Ministry on Tuesday said the Empowered Group of Ministers (EGoM) will meet soon and take a decision on revision of fuel prices.

"EGoM will meet shortly. It (rationalisation of petroleum prices with international market) has become an important issue to grapple with. The Government will look into it very shortly," Economic Affairs Secretary R Gopalan said.

He said a decision on fuel price revision should be taken at the earliest.

"...whatever rationalisation (in fuel prices)...we have to take a decision as fast as we can because that is very important," he said while talking to reporters on the sidelines of an OECD meet.

Earlier in the day, Oil Minister S Jaipal Reddy met Prime Minister Manmohan Singh to push for an early decision on raising diesel and domestic LPG prices, as losses of oil firms are mounting with each passing day.

The EGoM, headed by Finance Minister Pranab Mukherjee, was scheduled to meet on May 11, but was postponed. It has not met since June last year even though crude oil prices have spiralled by about 50 per cent.

The oil ministry is pushing for a Rs 3-4 per litre hike in diesel and a Rs 20-25 per cylinder increase in LPG rates.

Also, it is looking at a possible hike in kerosene prices.

Oil companies are losing Rs 14.22 on the sale of every litre of diesel at the current price of Rs 37.75 per litre in Delhi. In addition, state oil firms lose Rs 27.47 per litre of kerosene and Rs 381.14 per 14.2-kg domestic LPG cylinder.