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HindustanTimes Wed,22 Oct 2014

Crude oil up, govt faces heat to hike diesel, LPG prices

HT Correspondent, Hindustan Times  New Delhi, August 02, 2012
First Published: 00:09 IST(2/8/2012) | Last Updated: 02:01 IST(2/8/2012)

While the government is yet to bite the bullet, state-owned oil marketing companies are pushing for an increase in diesel and cooking gas prices in the backdrop of firming of international crude oil prices.

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“We need to arrest the situation before it is too late, as it happened in case of petrol when prices had to be revised in a go by over Rs. 7 a litre,” said a top management official from a state-owned oil company. “We need to go for small hikes than just one and a hefty one at that.”

In the backdrop of high global crude oil prices — that have moved up to an average of $103 a barrel  as against $98 a barrel a fortnight ago — the losses of oil companies on diesel sales have mounted to over Rs. 1 a litre from Rs. 10 a litre a fortnight ago.

While prices of cooking gas (or LPG) in the global markets have come down, under-recoveries on the sale of every LPG cylinder still continue to be very high at around Rs. 231 a cylinder.

“Even overall under-recovery on the three products has gone above Rs. 400 crore a day from Rs. 358 crore a day just a fortnight ago on July 16,” the official said.

Kerosene losses are also ruling high at around Rs. 29 a litre as on August 1, 2012.

“The total under-recoveries on the three sensitive petroleum products —  diesel, cooking gas and kerosene —  stand at Rs. 47,811 crore,” said a petroleum ministry release on Wednesday.


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