The government may have deferred a hike in prices of petroleum products but the issue is still being debated. Finance minister Pranab Mukherjee and Petroleum Minister Murli Deora will meet today to study the Kirit Parikh report on petroleum pricing.

The Parikh panel has recommended full deregulation of petrol and diesel pricing, an issue that requires a policy decision as that will reverse the system of government-administered fuel pricing.

The petroleum ministry has been demanding a reversal of government policy to ease the government's mounting oil subsidy bill and to improve financial health of the public sector oil companies.

Mukherjee and Deora will also discuss increases in the domestic LPG (liquefied petroleum gas) or cooking gas and kerosene as recommended by the Parikh panel.

The petroleum ministry has proposed a hike of Rs 2 per litre in diesel, Rs 3 per litre in petrol, Rs 3 per litre in kerosene and Rs 50 per cylinder of cooking gas.