Global crude oil prices breached the $98-a-barrel mark in Asian trade for the first time on Wednesday. The price of the Indian oil basket inched close to $89 a barrel.
However, there is still no decision by the government on whether to raise domestic fuel prices. Following opposition from within the ruling coalition, the government has deferred a decision at least until next week.
?We are trying to see if we can find a solution next week,? petroleum minister Murli Deora told reporters here. Deora, however, did not say why no decision had been taken this week, as he had stated earlier.
Sources said Prime Minister Manmohan Singh as well as UPA chairperson Sonia Gandhi were against the idea of taking a decision on this issue just before the Diwali festival. Besides, the Congress party had also opposed any move to raise fuel prices.
Petroleum secretary MS Srinivasan said oil companies? under-recovery on fuel sales at current oil prices is estimated to increase to Rs 70,500 crore for 2007-08. Based on the government?s decision last month, oil marketing firms such as IOC, BPCL and HPCL would get 42.7%, or about Rs 30,000 crore, in oil bonds. In addition, upstream companies like ONGC will share 35% of the under-recoveries.