Decision on fuel prices likey on Thu: Deora

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Petroleum Minister Murli Deora on Wednesday hoped that a group of ministers on fuel pricing will take a decision at its meeting on Thursday.

"The GoM is meeting on Thursday and I hope a decision is taken," he said, but refused to speculate on the quantum of hike that the group might recommend to the Union Cabinet.

"I can't say anything about that," Deora said.

Government sources said petrol prices could be increased between Rs 2-4 a litre, while diesel may turn costlier by Rs 1-2 per litre. The GoM might also suggest reducing customs duty on crude oil and excise duties on petroleum products.

The GoM, headed by External Affairs Minister Pranab Mukherjee, will discuss the options and make a recommendations to the Cabinet.

Indian Oil, Hindustan Petroleum and Bharat Petroleum together are projected to lose Rs 71,808 crore on fuel sale in 2007-08 if prices and duties are not revised. They currently lose Rs 9.20 per litre on petrol, Rs 11 a litre on diesel, Rs 331 per LPG cylinder and Rs 20 per litre on kerosene.

Petrol and diesel prices were last raised in June 2006 when crude oil was at 67 dollars a barrel. It is around 92 dollars per barrel in international markets. LPG prices were last raised by Rs 20 per cylinder in November 2004 when crude was at 34 dollars a barrel, while kerosene prices have not been changed since 2002 when crude was at 23 dollars a barrel.

Sources said during April-September, oil bonds worth Rs 11,257 crore were issued to oil companies, while upstream firms like ONGC and GAIL contributed Rs 8,788 crore.