Government to review petrol, diesel prices in mid-July

New Delhi: Government may review the prices of petrol and diesel, in mid July this year as these have not been changed since February despite a spurt in international oil prices.

The review will throw the exact quantum of under-realisation of petrol, diesel, domestic cooking gas (LPG) and kerosene for the full fiscal and how this has to be borne by all the stakeholders.

At least one-third of the projected Rs50,400 crore revenue loss on fuel sale will be borne by upstream firms like ONGC, while the Government will also share part of the burden by way of compensating fuel retailers through issue of oil bonds.

The rest will have to be split between the retailers and the consumers, the official said.

International oil prices have risen 10-12 per cent since mid-February when petrol prices were slashed by Rs2 a litre and diesel by Re one per litre.

The government officials said once the consolidated view is taken it would go to the Cabinet, in the second or third week of July, for a decision.