If Tata's car was the flavour for most of this fortnight, it is fuel that is threatening to steal the headlines this week, what with the crucial meeting of a group of ministers on petroleum prices on Thursday.
The question that the group of ministers, headed by Pranab Mukherjee, would be grappling with is: How `Nano' can the hike in petroleum prices be without hitting the aam aadmi politics or finance minister P Chidambaram's kitty.
Tatas Nano was launched last week for aspiring car owners, but the government is yet to make up its mind on whether, for the sake of energy conservation and optimum utilisation of hydrocarbon resources, auto fuel should be priced higher, given that international crude oil prices are flirting with the $100 mark.
Sources said a hike is imminent if not on Thursday then by the month-end. Petroleum minister Murli Deora till Wednesday evening hoped that the group of ministers on fuel pricing would take a decision at Thursday's meeting.
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"The GoM is meeting tomorrow and I hope a decision is taken," he said, but did not speculate on the quantum of hike that the group might recommend to the Union Cabinet. "I cannot say anything," Deora said.
The required hike in petrol is Rs 9.20 a litre, on diesel Rs 11 a litre, on LPG Rs 331 a cylinder and on kerosene Rs 20 a litre.
New Delhi is abuzz with figures of Rs 2-4 a litre hike in petrol and diesel and Rs 20 a cylinder hike in LPG. Any hike though cannot come with some changes in the excise duty structure since the government is under pressure from its allies in the Left as well as in the government to keep commodity prices in general under control.
The GoM which has two committees, one to look at food prices and the other into petroleum pricing, would discuss options and make a recommendation to the Cabinet.
Incidentally, a Cabinet meeting is scheduled earlier in the day at 11 am on Thursday while the GoM meeting is at 12.45 pm.
Petrol and diesel prices were last raised in June 2006 but were rolled back in two tranches later last financial year. The average Indian benchmark price for crude oil, however, has risen to $74.58 a barrel from $62.46 a barrel in 2006-07.
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