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Our Bureau

Kochi , Aug. 6

THE Union Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, said on Saturday that the Government is seriously concerned about the spiralling fuel prices, as the country's top-notch public sector oil companies had suffered losses in the first quarter of the fiscal.

"Our navaratna oil companies have suffered losses and sickening of any such company is a matter of serious concern," Mr Aiyar said here at a press conference.

But the Minister did not say whether the Government would change the import duty structure on petroleum products or review the subsidies being given to LPG and kerosene. "I cannot rule in anything nor rule out anything," he said. In the April-June period, the major refining and marketing companies, Indian Oil, Bharat Petroleum, Hindustan Petroleum and IBP suffered losses. While Indian Oil incurred its first ever loss (Rs 54 crore), Bharat Petroleum and Hindustan Petroleum announced losses of Rs 431 crore and Rs 508 crore respectively.

The Government's pricing policy on fuels and prevailing subsidies on LPG and kerosene are blamed for the losses incurred by these companies. Petrol is under-priced by Rs 2.25 a litre, while diesel is sold at a loss of Rs 4.69 a litre. Every LPG cylinder is subsidised by the marketing companies to the tune of Rs 92 and kerosene is subsidised by Rs 11 a litre.

Crude oil prices have surged in the international markets and touched a new high of $62 a barrel on Friday. Mr Aiyar said the situation has been presented before Parliament and the Prime Minister and the Union Finance Minister are keeping tabs on the matter.

On the proposed $7.4-billion gas pipeline project involving Iran and Pakistan, the Minister said all information to start the project structure would be ready by the year-end. The information will then be submitted before the Government.

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