The Hindu Business Line : ‘Govt may be compelled to review petro prices’

New Delhi, July 25 If the crude prices continue to rise, the Government may be compelled to review the retail prices of petroleum products. The Petroleum Minister, Mr Murli Deora, today said that the Government is trying not to raise retail prices of petrol and diesel.

Speaking to newspersons here, he said, “The situation is serious but we are trying our level best not to increase prices.” He said he will meet the Finance Minister, Mr P. Chidambaram next week to discuss about oil bonds and explore options like reduction in excise duty and changefrom ad-valorem rates to fixed rates that would help ease the burden of spurt in international oil prices.

The Indian crude prices on July 24 stood at $72.76 a barrel. The average of July till date was $72.71 a barrel. It averaged $66.52 per barrel in April-June quarter, up nearly 18 per cent from $56.50 a barrel in the January-March quarter.

Mr Deora said oil marketing companies — Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum — were losing Rs 185crore-Rs 195 crore per day on selling petrol, diesel, domestic cooking gasand kerosene below the cost price.

Mr Deora also said that he has held discussions with the Finance Minister on fiscal measures to ease burden of oil firms to avoid a price hike. The Petroleum Ministry is pitching for oil bonds to soak upatleast one-third of the projected Rs 55,000 crore of under-realisation on fuel sale this fiscal. An equivalent amount is to be contributed by the upstream companies.