Central government decides against implementing the Kirit Parikh panel’s recommendations on fuel price deregulation

Fuel Price Hike in India 2010

Yesterday, the Kirit Parikh panel recommended that the government deregulate the fuel prices. Now, the Congress Working Committee is all set to congregate in a meeting on Friday, the 5th of February, 2010. This meeting has mainly been called to discuss the rising inflation levels in essential commodities.

This meeting will also debate upon the Kirit Parekh panel’s recommendations. If the panel’s recommendations were accepted, prices of both petrol and diesel would have gone up by INR 3-4 per liter.

Also, the Kirit Parikh panel has recommended a price increase of INR 100 per LPG cylinder and kerosene by INR 6 per liter. If this price rise had happened, a truck strike was a distinct possibility as the truckers have already been struggling to maintain their fleets with the price of spare parts and lubricants shooting up.

Central government sources have now ruled out an immediate price hike of fuel prices as they are already grappling with the rising inflation of essential commodities. Also, please note that the fuel secretary has said that fuel price hike will not happen immediately but it can’t be avoided for long time.

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