Faced with opposition from key allies, the ministerial panel on fuels is unlikely to free up the motor fuel pricing regime when it meets on Monday but is almost certain to go for a marginal increase in prices of petrol and diesel with a view to reducing the amount of cash subsidy the Centre has to dole out to state-run oil marketing companies.

Reports filtering in on Sunday said key members of ministerial panel under FM Pranab Mukherjee — Indian railway minister Mamata Banerjee and agriculture minister Sharad Pawar — were opposed to the idea of allowing oil companies to set pump prices in line with global markets or raise fuel prices substantially. Fertiliser minister M K Alagiri is unlikely to support any steep rise in prices, as TN goes for assembly polls next year.

read full story at – Times of India