Bangalore: Indiansí New Year excitement might be shattered as the prices of Diesel, kerosene and cooking gas (LPG) may be hiked soon by the government on the recommendations of Vijay Kelkar Committee in order to correct fiscal deficit of the nationís economy.
"That (Vijay Kelkar committee recommendation on deregulating diesel and raising kerosene and LPG rates) is a proposal. It is still at proposal stage. The (Petroleum) Ministry is only processing that report and we are yet to take a decision," said Oil Minister M Veerappa Moily.
The panel had in September recommended 'immediate increase in Petroleum prices.'This should be continued in the next year in such a way that the prices of diesel are fully deregulated by the start of 2014-15.
'The prices of kerosene and LPG also should be revised regularly to keep the subsidy levels at affordable levels.'
Though the minister did not indicate a price hike soon, officials speaking on condition of anonymity said a proposal based on Kelkar Committee recommendations will be taken to the Cabinet soon and rates will go up if it is approved.
Price of diesel, which currently costs 47.15 per litre in Delhi, was last revised on September 14 when it was hiked by a steep 5.63 per litre.
Kerosene rates have not changed since June 2011 and it currently costs 14.79 per litre in Delhi.
State-owned oil companies currently sell diesel at a loss of 10.16 per litre, kerosene at 32.17 a litre and LPG at 490.50 per 14.2-kg cylinder.
Moily said the government was also considering raising the cap on supply of subsidised cooking gas cylinders to 9 per household in a year from current limit of six.