New Delhi, October 30 The Kirit Parikh Committee on fuel pricing Wed recommended an immediate increase in diesel worth by Rs.5 a liter to offset the loss incurred by state oil selling firms (OMCs) in selling below cost.

In its report submitted to the petroleum ministry here, the committee suggested that the balance loss ought to be met through a fixed subsidy of Rs.6 per l to the OMCs.

The panel has also suggested increasing kerosine costs by Rs.4 a litre, and a cap on subsidized domestic LPG to be restricted for each unit to 6 cylinders per annum.

The panel was constituted to recommend a pricing methodology for diesel, domestic LPG and kerosine sale through the general public distribution system.

In its draft report, the panel said that till diesel pricing was made market determined, the existing pricing mechanism based on trade parity should continue.

OMCs are allowed by the govt to extend diesel costs by 45-50 paise a l every month.