Petro hike put off again

NEW DELHI, Aug 25: The Centre is understood to have postponed a decision on the price hike of petroleum products by at least a week. Indications are that it will be effected after the current session of Parliament.

Highly placed sources said that by implementing the hike now, the government does not want to derail the discussions on achievements and failures of the country during the last 50 years in both houses of Parliament beginning Tuesday. Sources said the petroleum ministry had also not finalised the proposals till now. In all likelihood, the hike which is expected to be across the board, will be implemented next week.

Petroleum Minister Janeshwar Mishra had a series of meeting with the officials of his ministry on Sunday. Both the core and steering committees of the United Front had given, in principle, clearance to the price hike despite the reservations expressed by the Left parties. Mishra has gone on record that hike will be “painless”.

Indications are that the price hike will cover the anticipated deficit during the current financial year. The past deficit in the oil pool account running to nearly Rs 18,000 crore is expected to be covered by the government issuing bonds to the public sector oil.