The Cabinet Committee on Economic Affairs did not take up the issue of hike in petroleum prices on Thursday, Commerce Minister Kamal Nath said.
Sources in the government said that the CCEA deferred the issue as some of the crucial cabinet ministers were not present at the meeting.
Asked if the issue of hiking petrol and diesel prices was on the agenda of CCEA, Finance Minister P Chidambaram said, "yes. It has been deferred by a few days because some important ministers were not present."
Asked if CCEA might meet on Saturday, he said "possibly".
Petrol and diesel prices may be raised by Rs 1-1.50 per litre though an increase of over Rs 4.50 a litre on petrol and more than Rs 5 per litre in diesel is needed in line with the spurt in crude oil prices and increase in tax rates. The government may settle for a moderate increase.
The hike in excise duty on petrol and diesel and increase in road cess warrant a Rs 2.20 per litre increase in petrol and Rs 1.06 a litre raise in diesel prices. Additionally, the cost of supplying cleaner fuel from April 1 came to Rs 0.30 per litre for petrol and Rs 0.24 a litre for diesel.
A moderate hike in petrol and diesel prices was being considered with a view to limiting the impact on common man.
Indian Oil Corp, Bharat Petroleum Corp Ltd, Hindustan Petroleum Corp Ltd and IBP, who are losing Rs 72 crore per day due to non revision in petrol, diesel, LPG and kerosene prices, made a cash loss of Rs 1,424 crore (Rs 14.24 billion) in March and April.
SAIL-IISCO merger okayed
The government on Thursday cleared the merger of two steel PSUs -- Indian Iron and Steel Company and Steel Authority of India.
Merger of 11 million tonne SAIL with IISCO (3 MT) was today cleared at the meeting of the CCEA chaired by Prime Minister Prime Minister Manmohan Singh.