Dual oil pricing may not happen: Aiyar in LS

But he added that a final decision would be taken once the Rangarajan Committee submits its report.

Aiyar said the inter-ministerial panel under the chairmanship of C Rangarajan, who is also Chairman, Economic Advisory Council to the Prime Minister, has to suggest a long-term petroleum pricing policy. It could also examine dual pricing.

The committee, which was set up in October, will examine pricing and taxation with respect to petroleum products in order to stabilise and rationalise pricing. It will submit its report in six months.

Aiyar told the House the Centre would not reduce petrol and diesel prices even though international crude rates have softened since September.

Explaining the rationale for this, he said: “The current domestic prices still continue to be below the international parity prices.”

The minister said crude prices fell from $59.74 a barrel in September to $56.28 per barrel the following month. They slipped further to $53.56 a barrel until November 25. Aiyar said crude prices had fallen again last week.

During the last hike in prices, only 13 per cent of the total rise had been passed onto consumers. Oil marketing companies bore 51 per cent of the hike and the government absorbed the remainder, Aiyar said.

The minister said that under-recoveries of marketing companies like IOC, HPCL, BPCL and IBP continued to rise during the current fiscal. These are estimated at Rs 26,726 crore compared to Rs 20,146 crore last fiscal.