What’s in store for oil prices today?

The empowered group of ministers (E-GoM) on oil pricing is all set to meet at 1 pm on Friday to deliberate on the issue.

The buzz is that while no decision is expected on deregulation immediately, the group headed by finance minister Pranab Mukherjee may raise oil prices in phases.

However, the Union Cabinet that met on Thursday did not discuss the oil issue ahead of the E-GoM, a source said.

Even as the government is trying to ensure that the meeting of the E-GoM goes as per plan, there will be absentees for sure. Of the 8 members in the group, at least one, Union minister for roads and transport Kamal Nath, will be away.

Another member — Railway Minister Mamata Banerjee—may just decide to skip the meeting, a source said. Banerjee is learnt to have reiterated her opposition to any oil price hike.            

In the first EGoM meeting on June 7, no decision was taken on oil price decontrol, as two members — railway minister Mamata Banerjee and Agriculture Minister Sharad Pawar—were absent. The second meeting, informally fixed for June 17, had to be cancelled too.

Finance minister Pranab Mukherjee, who heads the E-GoM on oil prices, returned to New Delhi on Thursday after his 4-day trip to the US, just in time to take charge of the crucial meeting back home. 

It is learnt that Mukherjee has tried to convince the remaining seven members of the EGoM to attend the June 25 meeting. But, Nath is already in Abu Dhabi for a roadshow and will return only on June 30, according to an official in the ministry.

Among others, Union minister for chemicals & fertilizers, M K Alagiri, who was in oimbatore to attend the week-long international tamil conference, has returned to into the capital and is likely to attend the EGoM.

DMK minister Alagiri’s staff told this newspaper that the minister would be in New Delhi on June 25. Alagiri reached the first EGoM on oil prices quite late, and therefore could not attend the meeting. Communications minister A Raja, also from the DMK, is learnt to have gone for the June 7 EGoM to translate the discussions into Tamil for his colleague Alagiri, but Mukherjee didn’t allow him to sit in the meeting.

Mamata Banerjee, who’s more in Kolkata than in Delhi, is currently in the capital. Railway ministry officials said on Wednesday that Banerjee is expected to be in Delhi on June 25. But, Banerjee is known for changing her plans without prior notice.  A source close to development said Banerjee has not confirmed her presence for the meeting yet. 

Agriculture Minister Sharad Pawar, who was away for a surgery, is back in office. Pawar’s office has confirmed that he would attend the EGoM on June 25.
Power minister Sushil Kumar Shinde, also a member in this EGoM, has just returned from abroad, and is likely to attend the oil meeting.

Petroleum minister Murli Deora, who’s keen on oil price decontrol, is expected to be there for the meeting. Planning Commission deputy chairman Montek Singh Ahluwalia, another member of the group, is also likely to attend.

While EGoM members such as Murli Deora, Montek Singh Ahluwalia and Kamal Nath are in favour of a fuel price hike,  Banerjee and Alagiri are not.

Pranab Mukherjee favours decontrol of oil prices in theory, but a double-digit inflation has put him under political pressure. The EGoM, if it is able to meet on Friday, may deliberate on hiking the petrol prices by Rs 3 to 4 a litre.