Reports suggest thatthe Prime Minister's Office (PMO) may soon take steps to reform fuel pricing in the country.
 
 A panel headed by the chief economic advisor Kaushik Basu, has suggested that diesel prices should be allowed to fluctuate in a band in step with global prices. It has suggested a fixed government support for each litre of diesel sold. 
 
 The recommendations of an interministerial panel are expected to be discussed further before initiating crucial reforms, reports suggest. The panel that includes top bureaucrats has suggested diesel prices should be allowed to rise moderately, up to one rupee a litre every fortnight or month to cushion consumers from a sharp rise.  
 
 The PMO had been actively monitoring the sector in recent days, and seeking inputs on issues such as decline in gas production, pricing, hurdles in approvals for exploration companies, and the need to revamp the Directorate General of Hydrocarbons, the oil ministry's technical arm whose role has been questioned the CAG.
 
 The PMO has also questioned the oil ministry for delay in approving pricing formulas for Coal Bed Methane blocks, which cannot be developed without clarity on prices.