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2008-06-02

Fuel prices hike within three days

Despite Prime Minister’s indication of early fuel prices hike, source related to government said the decision may not take before Thursday as the government has not reached in a consensus.


The UPS government was evading from taking decision on fuels hike even as losses of state-run oil companies widened to Rs 650 crore a day, they said.


Prime Minister’s call for unanimity in thinking comes in the backdrop of opposition from Left parties, which props up the UPA from the outside, to any move to raise petrol, diesel and other domestic fuel prices.


Indian Oil, Bharat Petroleum and Hindustan Petroleum, who till last week were losing about Rs 580 crore per day on sale of petrol, diesel, domestic LPG and PDS kerosene, are incurring a revenue loss of close to Rs 650 crore from June 1, industry sources said.


Government spent most of its time last fortnight in consultations including at the highest level to combat the projected Rs 2, 25,040 crore revenue loss on fuel sales.


Official said the three firms, who till last week were losing Rs 16.34 a litre on petrol, are incurring a loss of Rs 21.43 on sale of every litre since June 1.


Similarly, the losses on diesel have widened to Rs 31.58 per litre from Rs 23.49 while on kerosene they have jumped to Rs 35.98 from Rs 28.72 per litre.


Losses on LPG have swelled to Rs 353 per 14.2-kg cylinder from Rs 305.90.

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Disclaimer

Ours is an advisory role. The final decision and consequences based on our Information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.