Petroleum minister Murli Deora is likely to meet finance minister Pranab Mukherjee next week to press for restoration of tax breaks on natural gas production.
The finance minister as part of his pre-Budget consultations is meeting industry bodies and ministers and has slotted Deora for June 15, a source said.
On Deora's agenda will be getting back the seven-year exemption or holiday from payment of income tax for natural gas producers. He may also press for infrastructure status for natural gas.
Sources said the minister may also take up deregulation of petrol and diesel prices. With crude oil prices on the rise again, they breached $71 a barrel on Wednesday, doubts are being cast if the Government may actually go ahead and free petrol and diesel prices.
Freeing fuel prices at this moment may lead to a sharp increase in petrol rates, the source said, adding if oil firms are not given freedom to raise prices in sync with the cost then a mechanism to compensate them for selling fuel at controlled rates would have to be devised.
Though the Cabinet had guaranteed exemption from payment of income tax on oil and gas production from areas awarded under the New Exploration Licensing Policy, the finance ministry last year said the fiscal incentive are only meant for oil.
