SINGAPORE: Prime Minister Manmohan Singh said on Tuesday a Group of Ministers has been constituted to look into revision of fuel prices that has been necessitated because of spurt in global crude oil prices.
"Cabinet did discuss this matter. I have appointed a GoM to report back to the Cabinet within one month," he said on the way to Singapore to attend the ASEAN Summit.
He, however, did not say when the Cabinet discussed the issue and as to who would head the GoM.
In New Delhi, a senior Petroleum Ministry official said the ministry has not received any communique on the appointment of a GoM. "In all probability it should be headed by External Affairs Minister Pranab Mukherjee," he said.
Public sector oil firms Indian Oil, Bharat Petroleum and Hindustan Petroleum are together losing over Rs 250 crore per day on sale of petrol, diesel, domestic cooking gas LPG and kerosene as they have not been allowed to raise retail prices despite rise in international oil prices.
An industry official said a GoM may have become necessary as there was no unanimity on raising fuel prices and Finance Ministry was opposing Oil Ministry's proposal to cut excise duty on petrol and diesel to ease the burden of oil firms.
Petrol attracts an excise duty of six per cent plus Rs 13 a litre while diesel is charged 6 per cent plus Rs 3.25 per litre excise duty. Petroleum Ministry wanted excise duty to the lowered by Rs 1-2 a litre.
