Fuel prices to go up in May

Industry experts believe that the government is merely postponing the price hike till the state elections are over; tax relief for loss making petro-units likely

NEW DELHI – Finance Minister P Chidambaram did not increase the prices of cooking gas and other petroleum products in this budget. But this might soon change due to mounting losses of public sector oil companies and the C Rangarajan Committee

Industry experts believe, however, that the Government will not touch fuel prices till the elections in five states are over. Oil marketing firms are therefore expecting some price corrections only in May.

The Petroleum Ministry, in the interim, is expecting a tax package from the Finance Ministry by the month-end to aid refiners who are making huge losses due to state-imposed price controls and an unfavourable budget.

Mumbai Mirror