EGoM to meet over fuel price hike issue

As oil companies press for a hike in fuel prices, Petroleum Minister S Jaipal Reddy has sought a meeting of a high-powered ministerial committee to decide on how to cut the losses they incur.
    
"I have asked for a meeting of the Empowered Group of Ministers (EGoM)," Reddy said after a meeting with Finance Minister Pranab Mukherjee, who heads the EGoM.
    
Asked if an increase in diesel prices was on cards, he said: "There is no proposal (to hike prices) as such but I have asked for a meeting of the EGoM so that the whole government can decide."
    
Reddy said the losses suffered by the state-owned firms on selling diesel, domestic LPG and kerosene below cost would cross Rs 135,000 crore in the fiscal.
    
"Our losses are exceeding Rs 135,000 crore (for the year). I want the EGoM meeting to apprise them of the situation on the oil PSUs front," he said.
    
State-owned oil firms are currently losing Rs 9.27 per litre of diesel, Rs 26.94 per litre of kerosene sold through the public distribution system (PDS) and Rs 260.50 per 14.2-kg LPG cylinder supplied to households for cooking purposes.