Govt will decide on fuel price hike today

The ministerial panel on commodity prices is scheduled to meet on Thursday to discuss the domestic impact of high international crude prices. The panel, being headed by external affairs minister Pranab Mukherjee, is expected to recommend an increase of Rs 2-3 a litre in petrol price and Rs 1-2 per litre in diesel. "The GoM (group of ministers) is meeting tomorrow and I hope a decision is taken," oil minister Murli Deora, who is a member of the panel, said on Wednesday but declined to speculate on the quantum of increase that could be approved. The panel may also recommend a reduction in customs and excise levies to keep the increase on the lower side. The oil ministry is pushing for an increase of Rs 4 a litre on petrol and Rs 2 on diesel. But such a steep increase may not pass the political muster of the ministerial panel. Last time the prices were increased by this amount, political pressure forced a rollback. What looks possible is a moderate increase of Rs 2-2.50 on petrol and Rs 1-1.50 on diesel. The increase could be on the lower side if the decision to increase prices comes with some reduction in excise and customs levies.