News Release Details
Deora hints at petrol price hike
New Delhi 19-Jul-2007
Union petroleum minister Murli Deora on Wednesday said that he will soon convene a meeting of oil marketing companies to discuss how to tackle the crisis triggered by high international prices of crude oil. "The situation has become really tough. The Indian basket of crude oil touched $73.89 a barrel on July 16. These losses are not sustainable," Mr 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. There has been speculation in the media about the government contemplating an increase of Rs 2 to Rs 2.50 a litre on petrol and Rs 1 to Rs 1.50 a litre on diesel in a bid to check the mounting losses of State-owned oil marketing companies. Meanwhile, Mr Deora asked finance minister P. Chidambaram on Wednesday to issue oil bonds worth Rs 19,000 crores to absorb one-third impact of the surge in international oil prices. Last fiscal, the government had issued oil bonds worth Rs 24,121 cores to IndianOil, BPCL and HPCL to compensate for one-third of losses on sale of petrol, diesel, LPG and kerosene. Oil firms are currently losing Rs 5.50 a litre on petrol, Rs 4,45 per litre of diesel, Rs 187 per LPG cylinder and Rs 14.70 per litre on kerosene sale. Under-realization on fuel sale is anticipated to be around Rs 55,000 crore in 2007-08. One-third of this amount would be met by upstream firms ONGC and oil by way of discounts of crude oil they sell to IndianOil, BPCL and HPCL. The remaining amount would have to be absorbed by retailers and passed on to consumers. Mr Deora also made a passing mention of the oil price increase to Prime Minister Manmohan Singh on the sidelines of a book release function as any decision to raise fuel prices will be based on political consideration. Denying reports that the fuel price might be hiked after Thursday's presidential election, Deora said: "The government has not taken a decision yet. But we will be discussing the issue with the oil companies on how to tackle the crisis."
New Delhi 19-Jul-2007
Union petroleum minister Murli Deora on Wednesday said that he will soon convene a meeting of oil marketing companies to discuss how to tackle the crisis triggered by high international prices of crude oil. "The situation has become really tough. The Indian basket of crude oil touched $73.89 a barrel on July 16. These losses are not sustainable," Mr 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. There has been speculation in the media about the government contemplating an increase of Rs 2 to Rs 2.50 a litre on petrol and Rs 1 to Rs 1.50 a litre on diesel in a bid to check the mounting losses of State-owned oil marketing companies. Meanwhile, Mr Deora asked finance minister P. Chidambaram on Wednesday to issue oil bonds worth Rs 19,000 crores to absorb one-third impact of the surge in international oil prices. Last fiscal, the government had issued oil bonds worth Rs 24,121 cores to IndianOil, BPCL and HPCL to compensate for one-third of losses on sale of petrol, diesel, LPG and kerosene. Oil firms are currently losing Rs 5.50 a litre on petrol, Rs 4,45 per litre of diesel, Rs 187 per LPG cylinder and Rs 14.70 per litre on kerosene sale. Under-realization on fuel sale is anticipated to be around Rs 55,000 crore in 2007-08. One-third of this amount would be met by upstream firms ONGC and oil by way of discounts of crude oil they sell to IndianOil, BPCL and HPCL. The remaining amount would have to be absorbed by retailers and passed on to consumers. Mr Deora also made a passing mention of the oil price increase to Prime Minister Manmohan Singh on the sidelines of a book release function as any decision to raise fuel prices will be based on political consideration. Denying reports that the fuel price might be hiked after Thursday's presidential election, Deora said: "The government has not taken a decision yet. But we will be discussing the issue with the oil companies on how to tackle the crisis."