NEW DELHI, June 15 (UPI) -- India's government has decided not to hike fuel prices in the near future as it would increase inflationary pressures.
The next meeting of the empowered group of ministers, which is to decide on a possible fuel price increase, has been "postponed indefinitely," Zeebiz Bureau reported Tuesday.
The announcement comes hours after Petroleum Minister Murli Deora said he wanted the EGoM to meet Thursday to make a decision. The EGoM was unable to reach an agreement on fuel price hike at its last meeting and postponed making a decision, saying further talks were necessary.
The government is worried that a further hike in fuel prices would increase inflation, which reached 10.16 percent last month, the highest rate among the Group of 20 nations. Raising prices will help the government cut fuel subsidies, which in 2009 totaled $5.5 billion.
Last September during a G20 meeting in Pittsburgh, India's special envoy on climate change Shyam Saran said that New Delhi will support the G20 leaders on withdrawing subsidies for fossil fuels "over time."
