The Hindu Business Line : Petrol, diesel retail price to be reviewed in mid-July

New Delhi June 11 Retail prices of petrol and diesel are likely to be reviewed by the Government in the middle of next month. A senior Petroleum Ministry official said that the situation would be reviewed once the international price trend of crude for the first quarter (April-June) of the current fiscal is available. "In early July, we hope to get a consolidated view,'' he said.

The country's crude oil basket on Friday fell by 95 cents from a day earlier to $67.66. The Indian basket touched its highest price at $68.87 per barrel on May 24. The Indian basket had averaged $65.74 in May and $65.52 in April. The Government will also look into the exact quantum of burden to be shared by all the stakeholders to offset the under recoveries suffered by the oil marketing companies for selling petroleum products - petrol, diesel, kerosene and cooking gas below the cost price.

The projected revenue loss suffered by the retailing companies - Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation - is estimated to be Rs 50,400 crore for the full year.

``Once we have a consolidated view, we will go to the Cabinet, possibly in second or third week of July, for a decision,'' the official said, adding that "the Cabinet will decide on the quantum of bonds the Finance Ministry will issue to the marketing companies as well as deliberate on the need for raising petrol and diesel prices."

APM gas

The Government may also increase the administered price of natural gas to Rs 3,600 per thousand cubic metres in July for power and fertiliser companies. Last year the Government had increased the APM gas prices by 20 per cent for general consumers except for power and fertiliser consumers.