The Hindu Business Line : Deora to discuss fuel pricing with PM today

NEW DELHI: The Petroleum Minister, Mr Murli Deora, on Wednesday said he would broach the fuel pricing issue with the Prime Minister, Dr Manmohan Singh, later on Wednesday when he meets him to discuss the health of oil companies.

“Of course, prices will be discussed... if you review the financial health of oil companies, this (pricing) is a subject that will come up for discussion,” he told reporters here.

According to a source, the Petroleum Ministry is likely to propose deregulation of petrol prices and gradual phasing out of subsidies on diesel to ease the burden on public sector oil marketing companies — indicating a possible hike of Rs 3 per litre in petrol rates.

The Government has not allowed Indian Oil, Bharat Petroleum and Hindustan Petroleum to raise the rates of petrol, diesel, domestic LPG and kerosene despite the cost of raw material (crude oil) jumping to $82 per barrel.

The three companies are projected to lose Rs 44,300-crore revenues on fuel sale this fiscal. They sell petrol at a loss of Rs 3.06 a litre, diesel at Rs 1.56 per litre, kerosene at a loss of Rs 17.23 per litre and LPG at a discount of Rs 299.01 per cylin der. — PTI

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