Petro price hike decision in 48 hrs

The government will decide on increasing petrol, diesel, LPG and kerosene prices within the next 24-48 hours.

This was announced by Finance Minister P Chidambaram after a meeting of the Cabinet Committee on Economic Affairs.

A final decision on the matter could not be taken due to the absence of Agriculture Minister Sharad Pawar, Defence Minister Pranab Mukherjee and Railway Minister Lalu Prasad Yadav from the meeting.

A CCEA meeting will be called in the next 24-48 hours to decide on the matter.

Sources said Aiyar has also suggested halving import duty on crude oil to five per cent and slashing customs duty on petrol and diesel to 15 per cent from 20 per cent. He has also suggested nil excise duty on LPG and kerosene to contain the effect of surge in crude oil prices.

A decision on raising prices could not be taken at Wednesday's CCEA as key allies like Lalu Prasad of RJD were not present.

Prasad is opposed to any hike in petroleum product prices before Assembly elections in his home state of Bihar.

"He has reasoned that the UPA government did not raise prices before Congress-ruled state of Maharashtra went to polls and now he wants the same treatment for Bihar," sources said.

Prasad, Pawar and UPA-government's trouble-shooter Mukherjee have been called to attend the next CCEA, scheduled to take place in a day or two.