Click to play videoNew Delhi: Union Government would no longer control fuel prices by providing subsidies, sources in the Petroleum Ministry have told CNN-IBN.
The official announcement would be made in the next few days. Sources add that fuel prices will be deregulated soon, which means the government will no longer control the pricing of fuel.
But the entire hike will not be passed on to the consumer with some of the subsidies staying.
The decision on quantum of subsidy sharing between government and oil marketing companies would also be take soon.
Petrol and diesel prices would be de-regulated but not kerosene and liquefied petroleum gas.
"It is true that the oil marketing prices are under pressure. Somebody has to pay for it. Since it is an inter-ministerial matter, it is for them to decide that who will pay and to what extent. There is a thinking that it needs to be de-regulated and aligned in line with international prices. To what extent burden will be passed on to consumer, on this, the decision is yet to be taken," said Petroleum Secretary RS Pandey.
This move is basically aimed at offsetting some of the losses of oil marketing companies due to the recent spike in global crude oil prices.
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