In his second meeting with finance minister P Chidambaram on capping the impact of rising crude oil prices in the international markets, which has touched new high at over $78 a barrel, petroleum minister Murli Deora on Wednesday pressed for fiscal measures to compensate state-run firms for selling fuel below the cost.
Oil PSUs?Indian Oil, Hindustan Petroleum and Bharat Petroleum?are losing close to Rs 180 crore every day on sale of petrol, diesel, domestic cooking gas (LPG) and PDS kerosene as the government has barred them from raising retail prices in line with rise in the cost of international crude oil.
?The situation has become really tough?, Deora said adding that the Indian basket of crude oil has touched $73.89 a barrel on July 16 and the losses are unsustainable.
However, he refused to say if petrol and diesel prices would be raised. ?I cannot say that. We are trying our best to see that a price hike is avoided,? he told reporters. Oil companies are losing Rs 5.50 per litre on petrol, Rs 4.45 per litre of diesel, Rs 187 per LPG cylinder and Rs 14.70 per litre on kerosene sale. Deora on Wednesday asked the finance minister to issue oil bonds worth Rs 19,000 crore to absorb one-third impact of the surge in international oil prices. Under-realisation on fuel sale is anticipated to be around Rs 55,000 crore in 2007-08. One-third of this amount would be met by upstream firms ONGC and OIL by way of discounts of crude oil they sell to IOC, BPCL and HPCL.