Only minimal fuel hike price, says Deora
18 Jan 2008
Speaking to reporters in the backdrop of yesterday's inconclusive group of ministers meeting, petroleum minister Murli Deora said that in view of crude oil prices having crossed the $100-mark, if the government raised retail rates of fuel, "it will be minimal. We will see that people will not suffer."
The government had last increased petrol and diesel prices on June 6, 2006.
The group of ministers constituted by the prime minister under foreign minister Pranab Mukherjee could not arrive at a consensus on a price hike in view of the uncertainty over the timing of the next general elections after the recent defeats in the state assembly elections. (See: Ministers fail to decide on fuel price hike; plan to meet again)
Moreover, railway minister Lalu Prasad, defence minister A K Antony and planning commission deputy chairman Montek Singh Ahluwalia failed to turn up for the meeting called to build a political consensus for fuel price hike.
The group of ministers will meet on Saturday to decide on raising prices. The panel's suggestions will have to be agreed by the cabinet, whuich may meet as early as Monday to approve the price hike in view of the rising losses being accumulated by the government oil marketing companies.
With the crude oil prices touching an all-time high, the three government-owned oil marketing companies - Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum - have projected a combined loss of Rs69,753 crore on sale of petrol, diesel, LPG and PDS kerosene as the government has not allowed them to raise prices in line with the price of imported crude.
Petrol is being sold at a loss of Rs8.74 a litre, diesel at Rs9.92 per litre, kerosene Rs20.53 a litre and LPG at a loss of Rs256.35 per cylinder.
India's crude oil purchases have risen by about 170 per cent j from $32.37 a barrel in April 2004 to $87.17 yesterday, even as retail prices of petrol and diesel have gone up by just 29 per cent and 40 per cent, respectively.
