News Release Details
Deora seeks props for subsidizing oil sales
New Delhi 19-Jul-2007
With oil prices touching new highs, petroleum minister Murli Deora has knocked at the doors of finance minister P. Chidambaram for fiscal measures to compensate state-run firms for selling fuel below the cost. "The situation has become really tough... the Indian basket of crude oil touched $73.89 a barrel on 16 July. These losses are not sustainable," Deora said, but refused to say if petrol and diesel prices would be raised. "I cannot say that. We are trying our best to see that a price hike is avoided," he said. Oil firms are losing Rs5.50 a litre on petrol, Rs4.45 per litre of diesel, Rsl87 per LPG cylinder and Rsl4.70 per litre on kerosene sale. Deora asked finance minister to issue oil bonds worth Rsl9,000 crore to absorb one-third impact of the surge in international oil prices.
New Delhi 19-Jul-2007
With oil prices touching new highs, petroleum minister Murli Deora has knocked at the doors of finance minister P. Chidambaram for fiscal measures to compensate state-run firms for selling fuel below the cost. "The situation has become really tough... the Indian basket of crude oil touched $73.89 a barrel on 16 July. These losses are not sustainable," Deora said, but refused to say if petrol and diesel prices would be raised. "I cannot say that. We are trying our best to see that a price hike is avoided," he said. Oil firms are losing Rs5.50 a litre on petrol, Rs4.45 per litre of diesel, Rsl87 per LPG cylinder and Rsl4.70 per litre on kerosene sale. Deora asked finance minister to issue oil bonds worth Rsl9,000 crore to absorb one-third impact of the surge in international oil prices.