India Forms Panel to Decide Fuel Pricing Amidst Rising Oil Costs
The Indian government has constituted a new Group of Ministers (GoM) to decide on fuel pricing, with External Affairs Minister Pranab Mukherjee at its helm. The GoM includes Defence Minister A K Antony, Finance Minister P Chidambaram, Railway Minister Lalu Prasad, Road Transport, Highways & Shipping Minister T R Baalu, Consumer Affairs Minister Sharad Pawar and Petroleum Minister Murli Deora.
The move comes as the government tries to evolve a political consensus on raising domestic fuel prices amidst rising international crude oil prices. Public sector oil firms are losing over Rs 250 crore per day due to not being allowed to raise retail prices despite a rise in international prices.
Petroleum Ministry wanted excise duty to be lowered by Rs 1-2 a litre, but the Finance Ministry opposed this proposal, leading to the formation of the GoM. The government aims to report back to the Cabinet within one month with its recommendations.