Indian govt may allow oil firms to fix petrol, diesel prices

The Indian government will consider deregulating petrol and diesel prices as well as increasing rates of natural gas sold by state firms, said Murli Deora, who is likely to start a second term as Petroleum Minister. Separate draft Cabinet notes are ready for giving public sector INDIAN OIL CORP (BSE: 530965), BHARAT PETROLEUM CORPORATION (BPCL)(BSE: 500547) and HINDUSTAN PETROLEUM CORPORATION (BSE:500104) freedom to fix petrol and diesel prices when crude oil prices are below US$75 a barrel and raising rates of natural gas produced by OIL AND NATURAL GAS CORP (ONGC) (BSE: 500312) and OIL INDIA LTD from nominated fields.

* Deora, the outgoing Petroleum Minister, has been renominated to the Union Cabinet and is mostly likely to retain his ministry, breaking the jinx that no one oil minister has served a second term in the country.

* No one has ever completed a full five year term as Petroleum Minister and none have ever been repeated.

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