sfas
13-11-2007, 07:58 PM
No hike in petrol, diesel prices: Deora
The government today ruled out any immediate hike in retail prices of petrol and diesel saying global crude oil prices will first need to stabilise before a decision is taken.
"We don’t want to burden the poor man... (we’ll) let global prices stabilise before taking a decision," Petroleum Minister Murli Deora said today.
He, however, did not specify at what level of crude oil prices the government would look at revising retail rates.
Justifying the capping of retail prices of automobile fuels at the current levels, Deora said the government had already agreed to bear 42.7% of the total revenue loss on retail sales of petrol, diesel, LPG and kerosene through bonds to oil marketing companies.
Oil exploration companies like ONGC and OIL will bear one-third of the burden, while oil marketing companies will bear the rest of the burden of revenue loss, Deora said. "I am justifying why we do not need a hike in retail prices of petrol and diesel," he told reporters during a press meet today.
The cabinet has already cleared oil bonds worth Rs 23,457 crore to be issued to oil marketing companies - Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) - during the current financial year to partly compensate them for selling petroleum products at subsidised prices.
"The cabinet has agreed that 42.7% of the revenue loss will be borne through bonds. If the revenue loss is larger for the year, the value of bonds will rise for which we do not need to go to the cabinet again," Petroleum Secretary M S Srinivasan said.
When the oil bonds were cleared last month, the average price of the basket of crude oil that Indian refiners buy was taken at $69 per barrel. The basket is now averaging $72 per barrel so far this financial year.
Srinivasan said that the total retail revenue loss of the oil marketing companies for this financial year is now estimated to rise to Rs 68,640 crore when compared with the earlier estimate of Rs 55,000 crore.
The three oil marketing companies continue to lose around Rs 240 crore every day for the fuel it sells at subsidised rates. Global crude oil prices are hovering around the $95 per barrel mark while the Indian basket of crude oil has averaged almost $89 per barrel in November so far.
The country imports almost 73% of its crude oil requirement. An appreciating rupee against the dollar has helped the government save almost Rs 22,000 crore on crude oil import bill in this financial year so far. However, crude oil prices have risen almost 29% so far this year. "If the rupee had not appreciated, the revenue loss for the year would’ve been over Rs 90,000 crore," Srinivasan said.
BS
The government today ruled out any immediate hike in retail prices of petrol and diesel saying global crude oil prices will first need to stabilise before a decision is taken.
"We don’t want to burden the poor man... (we’ll) let global prices stabilise before taking a decision," Petroleum Minister Murli Deora said today.
He, however, did not specify at what level of crude oil prices the government would look at revising retail rates.
Justifying the capping of retail prices of automobile fuels at the current levels, Deora said the government had already agreed to bear 42.7% of the total revenue loss on retail sales of petrol, diesel, LPG and kerosene through bonds to oil marketing companies.
Oil exploration companies like ONGC and OIL will bear one-third of the burden, while oil marketing companies will bear the rest of the burden of revenue loss, Deora said. "I am justifying why we do not need a hike in retail prices of petrol and diesel," he told reporters during a press meet today.
The cabinet has already cleared oil bonds worth Rs 23,457 crore to be issued to oil marketing companies - Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) - during the current financial year to partly compensate them for selling petroleum products at subsidised prices.
"The cabinet has agreed that 42.7% of the revenue loss will be borne through bonds. If the revenue loss is larger for the year, the value of bonds will rise for which we do not need to go to the cabinet again," Petroleum Secretary M S Srinivasan said.
When the oil bonds were cleared last month, the average price of the basket of crude oil that Indian refiners buy was taken at $69 per barrel. The basket is now averaging $72 per barrel so far this financial year.
Srinivasan said that the total retail revenue loss of the oil marketing companies for this financial year is now estimated to rise to Rs 68,640 crore when compared with the earlier estimate of Rs 55,000 crore.
The three oil marketing companies continue to lose around Rs 240 crore every day for the fuel it sells at subsidised rates. Global crude oil prices are hovering around the $95 per barrel mark while the Indian basket of crude oil has averaged almost $89 per barrel in November so far.
The country imports almost 73% of its crude oil requirement. An appreciating rupee against the dollar has helped the government save almost Rs 22,000 crore on crude oil import bill in this financial year so far. However, crude oil prices have risen almost 29% so far this year. "If the rupee had not appreciated, the revenue loss for the year would’ve been over Rs 90,000 crore," Srinivasan said.
BS