In some relief for those who were on the edge that the prices of LPG and diesel might increase, the central government on May 28, 2012 said that there will be no immediate hike in the prices. After the massive hike of petrol, it was speculated that a hike in the prices of LPG, diesel and kerosene might soon follow.
S Jaipal Reddy, petroleum minister after discussing with finance minister Pranab Mukherjee, the impact of fuel price hike on inflation said, “We are not considering a hike in the prices of diesel, domestic LPG and kerosene, it is out of question right now”.
The meeting was also attended by chief economic adviser, Kaushik Basu. Reddy added that no dates have been fixed for convening a meeting of a ministerial panel to decide on revising the rates of LPG, diesel and kerosene.
Reddy said, “It was only a meeting of the inter-ministerial group to look at the question of inflation and I was requested to come and offer my insights before they finalise their group recommendations”. Despite the depreciation on money in the rupee The Empowered Group of Ministers (EGoM) on fuel prices, haven’t met since June last year on the rise in global crude oil prices the cost of imports.