Monday, August 11, 2008

Chaturvedi Panel for sharp increase in oil prices

The high-level Chaturvedi Committee has recommended raising petrol prices by Rs 2.50 a litre per month till March 2009 and diesel prices by Rs 0.75 per litre till 2010 to eliminate subsidies on the two fuels.The three-member panel, headed by Planning Commission member B K Chaturvedi also suggested levying a 'Metro Extra' tax of Rs 2 per litre on diesel, in four installments in large cities where the fuel was being used in expensive cars.

Besides suggesting freeing auto fuel pricing from government control, the commitee also recommended changes in distribution of domestic LPG by restricting only six refills per connection a year.The Committee also suggested slashing import duty on petrol and diesel to zero (from 2.5 per cent) as has been done in the case of crude oil, domestic kerosene and LPG.

Read more in The Economic Times article.

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