ID :
99777
Wed, 01/13/2010 - 09:21
Auther :
Shortlink :
https://www.oananews.org//node/99777
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PM to review of oil PSUs' finances with Pranab, Deora tomorrow
New Delhi, Jan 12 (PTI) Petrol prices may go up by Rs 3 a
litre if Indian Prime Minister Manmohan Singh at a meeting on
Wednesday accepts the Petroleum Ministry's proposal to free
pricing of petrol while gradually increasing the diesel rates.
The Prime Minister is scheduled to review the financial
health of oil PSUs at a meeting with Indian Finance Minister
Pranab Mukherjee and Petroleum Minister Murli Deora Wednesday
evening.
"Petroleum Ministry is likely to propose deregulation of
petrol prices and gradual phasing out of subsidies on diesel
to ease burden on public sector oil marketing companies," a
source said.
The government has not allowed Indian Oil, Bharat
Petroleum and Hindustan Petroleum to raise rates of petrol,
diesel, domestic LPG and kerosene despite the cost of raw
material (crude oil) jumping to USD 82 per barrel.
The three firms are projected to lose Rs 44,300 crore in
revenues on fuel sale this fiscal.
The three firms 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 a cylinder.
The source said the ministry may propose auto fuel
deregulation in the light of finance ministry's failure to
keep its promise of compensating the three firms for their
losses on LPG and kerosene through issue of bonds.
"This way they (oil companies) may be able to minimise
loss. The government may then meet Rs 15,000-20,000 crore of
losses either from Budget or through oil bonds and the rest
can be borne by upstream firms like ONGC," the source said.
IOC, Bharat Petroleum Corporation Limited. and Hindustan
Petroleum Corporation Limited (HPCL) are projected to lose
about Rs 30,000 crore on LPG and kerosene this fiscal.
Planning Commission of India Deputy Chairman Montek Singh
Ahluwalia and a former Planning Commission member Kirit S
Parikh, who heads an expert committee on fuel pricing, may
join Wednesday's deliberations.
Officially the meeting has been called to take stock of
the petroleum sector, especially the financial position of PSU
oil retailers, the source said.
The Government had failed to provide the promised oil
bonds to make up for the revenue loss on LPG and kerosene, in
the absence of which HPCL and BPCL reported losses in the
second quarter while Indian Oil Corporation barely scrapped
through.
Besides the three, private fuel retailers Reliance
Industries, Essar Oil and Shell have also sought freeing of
petrol and diesel prices for a level-playing field.
Sources said the meeting may also discuss the current
mechanism to share revenue losses incurred by the state-owned
oil retailers with upstream companies like Oil and Natural
Gas Corporation (ONGC) and the government.
Besides reviewing both upstream and downstream sectors,
the meeting is likely to hold preliminary discussions on the
findings of the Parikh committee, he said. PTI ANZ
MYR
litre if Indian Prime Minister Manmohan Singh at a meeting on
Wednesday accepts the Petroleum Ministry's proposal to free
pricing of petrol while gradually increasing the diesel rates.
The Prime Minister is scheduled to review the financial
health of oil PSUs at a meeting with Indian Finance Minister
Pranab Mukherjee and Petroleum Minister Murli Deora Wednesday
evening.
"Petroleum Ministry is likely to propose deregulation of
petrol prices and gradual phasing out of subsidies on diesel
to ease burden on public sector oil marketing companies," a
source said.
The government has not allowed Indian Oil, Bharat
Petroleum and Hindustan Petroleum to raise rates of petrol,
diesel, domestic LPG and kerosene despite the cost of raw
material (crude oil) jumping to USD 82 per barrel.
The three firms are projected to lose Rs 44,300 crore in
revenues on fuel sale this fiscal.
The three firms 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 a cylinder.
The source said the ministry may propose auto fuel
deregulation in the light of finance ministry's failure to
keep its promise of compensating the three firms for their
losses on LPG and kerosene through issue of bonds.
"This way they (oil companies) may be able to minimise
loss. The government may then meet Rs 15,000-20,000 crore of
losses either from Budget or through oil bonds and the rest
can be borne by upstream firms like ONGC," the source said.
IOC, Bharat Petroleum Corporation Limited. and Hindustan
Petroleum Corporation Limited (HPCL) are projected to lose
about Rs 30,000 crore on LPG and kerosene this fiscal.
Planning Commission of India Deputy Chairman Montek Singh
Ahluwalia and a former Planning Commission member Kirit S
Parikh, who heads an expert committee on fuel pricing, may
join Wednesday's deliberations.
Officially the meeting has been called to take stock of
the petroleum sector, especially the financial position of PSU
oil retailers, the source said.
The Government had failed to provide the promised oil
bonds to make up for the revenue loss on LPG and kerosene, in
the absence of which HPCL and BPCL reported losses in the
second quarter while Indian Oil Corporation barely scrapped
through.
Besides the three, private fuel retailers Reliance
Industries, Essar Oil and Shell have also sought freeing of
petrol and diesel prices for a level-playing field.
Sources said the meeting may also discuss the current
mechanism to share revenue losses incurred by the state-owned
oil retailers with upstream companies like Oil and Natural
Gas Corporation (ONGC) and the government.
Besides reviewing both upstream and downstream sectors,
the meeting is likely to hold preliminary discussions on the
findings of the Parikh committee, he said. PTI ANZ
MYR
