Diesel, LPG price hike not on Cabinet committee's agenda today: Jaipal Reddy

Oil Minister S Jaipal Reddy indicated that a hike in diesel, cooking gas and kerosene price, though "unavoidable", may not be decided by the Cabinet Committee on Political Affairs (CCPA) at its meeting later on Tuesday.

"If (price increase) is taken up today (by CCPA), which is not very likely, some decisions may be taken... if it is not taken up today, decision will be postponed," he said.

CCPA is headed by Prime Minister Manmohan Singh

"There is a meeting of the CCPA (this evening). This item (increase in diesel and cooking fuel) is not listed," Reddy said after meeting Finance Minister P Chidambaram in New Delhi. "I am not sure if the item will be taken up at all today."

Reddy said he had on Monday circulated an updated version of a note detailing the crisis created by rise in crude oil prices and fall in value of rupee against the US dollar to members of CCPA.

"I have tried to acquaint the members of CCPA about this matter... As I have said before, painful and difficult decisions on price of oil products will have to be taken. Increase in price is unavoidable," he said.

Reddy added that if the CCPA does not discuss the fuel price issue on Tuesday, it would be taken up at the next meeting of the Cabinet committee which takes decision that have wider political ramifications.

He said a decision on raising prices would have to be taken not just on economic facts but also taking into account the how much the consumers can absorb. "We have to take a balanced view."

Asked about the quantum of hike in rates that is likely, he said, "I can't say to what extent (the price would be increased). If I had the powers it would have been done yesterday, I don't know if it will be done today or tomorrow".

With inputs from PTI