Monday, September 5 2005 19:54 Hrs (IST) - World Time -

Coimbatore: The Union Cabinet will take a decision on pricing petroleum products when it meets tomorrow (Sept 6, 2005), Finance Minister P Chidambaram said today (Sept 5, 2005).

"I cannot say anything," he told reporters here to a specific question on whether there would be a hike in the prices. Similar was his reply when asked whether there would be cut in levies on petroleum products.

"The Cabinet is scheduled to meet tomorrow and any decision on the price rise would be taken collectively," Chidambaram said. Sources said the Petroleum Ministry had proposed raising petrol and diesel prices by Rs 3 per litre each and LPG price by Rs 20 per cylinder, besides suggesting a cut in levies on petrol and diesel by Re one per litre each.

But the Finance Ministry was reportedly averse to such cuts, claiming that tax revenues from oil sector had grown only 9 per cent this fiscal, far short of the targeted 15 per cent.

Last week, the Cabinet had deliberated on the urgency to raise fuel prices, but had put off a decision till the return of Petroleum Minister Mani Shankar Aiyar from his foreign tour. According to sources, petrol was currently being under-priced by Rs 7.45 a litre and diesel by Rs 5.15 per litre. LPG was being sold at a loss of Rs 96 per cylinder and Rs 12.85 a litre to the cost discounted kerosene price.