The Centre will reportedly allow private oil companies to hike petrol prices by Rs. 3 over the weekend.
The expected hike in diesel and cooking gas prices will take longer to materialise, as the meeting that was to be convened by Union Finance Minister Pranab Mukherjee on Wednesday was postponed by a week. The ministerial gathering was to consider the prices of kerosene and cooking gas.
According to reports, the issuance of cooking gas cylinders will be linked to the Aadhar cards. Each family with Aadhar cards will be granted 6 cooking gas cylinders per annum at subsidised rates. From the 7th cylinder onwards, one would be required to pay the market price of about Rs. 700 for each cylinder.
The implementation of this scheme will unburden the government from the expenditure of upto Rs. 3,500 crores on fuel subsidies.
Even as the general public is struggling to accept the inevitable Rs. 3 hike in petrol prices, reports are appearing in a section of the media that private oil companies are seeking a Rs. 5 to Rs. 6 hike on the fuel.
The Centre had informally requested private oil industries in January 2011 to refrain from hiking prices, as the elections in 5 states of the country were nearing. It was unanimously agreed upon that the companies would be allowed to increase fuel prices soon after the completion of polling.
With the polls having concluded on 10th May, the companies seem to be gearing up to minimise the losses they are reportedly currently incurring due to the escalating international crude oil prices.