The Government is considering Vijay Kelkar Committee recommendations on hiking fuel prices to slash soaring fiscal deficit, but the final decision is yet to be taken, Oil Minister Veerappa Moily said.

The Kelkar Committee, which was appointed by the Finance Ministry to sketch a roadmap for fiscal consolidation, has suggested immediate hikes in prices of subsidised fuels like LPG and kerosene, as well as de-regulation of diesel.

Speaking to media persons at an Assocham event, Oil Minister Moily said, "It is still at the proposal stage. There is a report by Vijay Kelkar - de-regulation and increase of price. Our Ministry is yet to process and finalise its view on this issue."

At present, diesel in the national capital costs Rs 47.15 per litre following the last revision of Rs 5.63 per litre on September 14. Kerosene costs Rs 14.79 per litre and its prices have not been revised since June last year.

Public sector oil marketing companies IOC, BPCL and HPCL are selling diesel, kerosene and LPG at a loss of Rs 10.16 per litre, Rs 32.17 per litre and Rs 490.50 for each refill, respectively.

Prices of petrol were freed from Government control in June last year, on the recommendations committee headed by Planning Commission member Kirit Parikh