In order to help the Oil Marketing Companies, the Empowered Group of Ministers (EGoM) which is headed by the Finance Minister Pranab Mukerjee is reviewing the diesel and domestic LPG prices.

The EGoM set a meeting today to discuss the raising diesel prices and is searching for a decision and the government must be on board before a decision is made. According to sources, the ministry is hoping to cut Rs 4.60 per liter of Central excise on diesel.

The Oil Ministry is forcing equitable sharing of the burden which is being caused by the rise of crude oil prices with consumers, government and state-owned companies. Petroleum Minister S Jaipal Reddy stated that the ministry has already worked out potential options and will consider their final decision soon.

Reddy stated: "Nothing (on quantum of hike in diesel, domestic LPG or kerosene price as well as reduction in customs and excise duties) has been circulated. Any speculations (on these) are unfounded”.

On the EGoM’s Agenda is to discuss the price of diesel. They are expecting a hike of Rs 2-3 per liter and an increase of Rs. 25 per domestic LPG. The panel may also consider lowering customs-which is now 5% to zero.