Petroleum minister Murli Deora will meet Prime Minister Manmohan Singh on Wednesday to discuss the options for capping the impact of the unprecedented surge in international crude oil prices.
Deora said the government is likely to decide within the next two days whether to hike petrol and diesel prices and provide some relief to state-run oil marketing companies.
?We are trying our best to find a solution. I am going to meet Prime Minister Manmohan Singh day after tomorrow. He has to decide… even if there is a rise… it will be minimal,? he said.
Deora had last week met finance minister P Chidambaram to discuss options such as increasing prices or reducing excise duty for public sector oil marketing firms.
The government has so far not allowed companies such as Indian Oil Corp, BPCL and HPCL to raise retail prices although international crude prices have touched record highs and are racing toward the 100 dollar a barrel mark.
?We have to support our public sector oil companies from losses… any decision should also not burden the people,? Deora said, adding no decision has been taken yet.
The government last month decided not to raise fuel prices this fiscal and instead decided to compensate 42.7% of the then projected revenue loss of Rs 54,935 crore on fuel sale through issue of oil bonds. Besides, giving oil bonds worth Rs 23,457.24 crore, 35% or Rs 19,227.25 crore of the total under-realisation in revenue was to be borne by ONGC, GAIL and OIL. The remaining under-recovery was to be borne by IOC, BPCL and HPCL. However, with global crude prices crossing $ 96 a barrel, the compensation is now being considered inadequate. Indian basket of crude has crossed 85 dollars a barrel. Fuel retailers IndianOil, Bharat Petroleum and Hindustan Petroleum are currently losing over Rs 240 crore per day on sale of petrol, diesel, domestic LPG and PDS kerosene.