Petroleum Minister Murli Deora on Wednesday started consultations with political parties, including UPA's partners, ahead of taking a proposal to increase fuel prices to the Union Cabinet, possibly on Thursday.
Deora met A Raja, Telecom Minister and senior leader of UPA's ally, DMK, on Wednesday morning as part of efforts to build consensus for freeing petrol and diesel prices, and marginally increasing kerosene and LPG rates.
Sources said Raja was non-commital on the proposal and is believed to have told Deora that a position on the proposal will be taken by his party's leader M Karunanidhi.
The Congress core group is meeting later in the evening where the implementation of Kirit Parikh Committee report on fuel pricing reforms may be discussed.
Sources said the Petroleum Ministry is likely to go with the Kirit Parikh panel's recommendation of freeing petrol and diesel prices, but wants the hike proposed for LPG and kerosene moderated.
The Kirit Parikh Committe had suggested an increase of Rs 6 a litre in kerosene rates and a Rs 100 per cylinder increase in LPG prices.
Sources said the Ministry will push for a minium of 50 per cent increase in the hike suggested by Kirith Parikh Committe at the meetimg today.
Congress on Wednesday hinted at a possible hike in prices of petroleum products but said it should be done when it is unavoidable and in a manner that has "minimum" impact on the common man.
"As long as there is no domestic or international compulsion, prices should not be increased. Even if compulsion is there, it should be increased minimum in actual terms," party spokesperson Abshishek Singhvi told reporters in Delhi.
The comments came a day before the Union Cabinet meets to discuss a proposal for freeing petrol prices from government control and for a moderate increase in diesel, cooking gas and kerosene rates.
The Congress core group, which includes UPA Chairperson Sonia Gandhi, will meet to vet the proposal before it goes to the Cabinet.
Asked to comment on the Kirit Parikh panel report on fuel pricing reforms, which suggested a steep hike for cooking gas and kerosene rates, Singhvi said, "A report has recommendatory value." He said that before a formal announcement, the report has to be first accepted by the government and a decision has to be taken.
"There are diverse inputs. Parikkh's report is one input. All inputs are taken into consideration before a decision is taken," Singvi said adding that there is no point in speculating before a decision is formally announced.
Asked about the government's move to increase petro prices vis-a-vis UPA's commitment against price rise, Singhvi said, "A lot of what you are talking is speculation." PTI
