Diesel, LPG Prices Likely to Go Up If Govt Approves Kelkar Report

Bangalore: Indians’ 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 nation’s economy.

The Kelkar Committee was appointed by Finance Ministry to suggest a roadmap for fiscal consolidation and also assist the ministry in making fiscal policy which can help in reducing deficits and the accumulation of debt. Hence, the committee has suggested that an immediate hike in prices of diesel by 4 per litre, of kerosene by 2 a litre and of LPG by 50 per cylinder and complete deregulation of diesel prices by start of 2014-15 fiscal, will be a good tool for cutting down the fiscal deficit.

"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.

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