Petrol Stop - Plan panel for free pricing of oil, gas, coal in 2009-10

Plan panel for free pricing of oil, gas, coal in 2009-10

Tuesday, 01 September 2009

01 Sept 2009;timesofindia.indiatimes.com:NEW DELHI: The Planning Commission on Tuesday recommended that prices of petrol, diesel, gas and coal should be freed or linked to international market, a move if accepted would make energy costlier."Bring pricing of oil, gas and coal to trade parity or competitive marketing basis," the Commission said in a document on the Integrated Energy Policy (IEP) which was placed before the meeting of the full Planning Commission chaired by Prime Minister Manmohan Singh. Noting that the progress on various recommendations of the IEP, approved by Cabinet in December 2008, has been slow, the Commission said, prices of various petroleum goods and coal are still administered. Besides suggesting linking of petrol and diesel prices with international markets, the Commission recommended raising of gas prices by public sector companies. "Natural gas prices of PSUs (are) very low and need revision," it said in a presentation before the meeting which besides Singh and other Commission members was attended by about a dozen ministers, including Finance Minister Pranab Mukherjee, Petroleum Minister Murli Deora and Power Minister Sushilkumar Shinde. Oil marketing companies are suffering losses as the government has not raised the prices of domestic petrol and diesel in line with increase in crude prices in the global market where the costs have shot up to $70-72 a barrel from $34 in December 2008.