Minister of Petroleum and Natural Gas for a second consecutive term, Mr Murli Deora, informed that the Govt. of India is considering the issue of deregulation of auto fuel prices. The decision regarding this issue will be taken soon by the cabinet.

Deora further said, "The issue of deregulation is being discussed and it will be put up to the Cabinet for a decision."

Mr. Deora's declaration patted the stock market, boosting the prices of oil company shares. On the National stock exchange on Friday, IOC's shares closed the day nearly
7 per cent higher, BPCL's shares closed at 4 per cent higher, ONGC 4 per cent higher, GAIL (India) 5 per cent higher.

Earlier, Oil Ministry sources had said that draft Cabinet notes were made ready for giving state-run oil marketing firms like Indian Oil, Bharat Petroleum and Hindustan Petroleum the autonomy to fix petrol and diesel prices when crude oil rules under $75 per barrel.

After deregulation takes place, fuel retailers will be free to fix petrol and diesel prices. Speaking on the issue of LPG Deora said, "At present, 9,350 LPG agencies cover only 50 per cent of the population. We want to extend the coverage."

According to Deora, the government is also making plans to fortify urban gas distribution networks.