The Hindu : Front Page : Petroleum price cut imminent

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Thursday, Jan 01, 2009
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Petroleum price cut imminent

K. Venkiteswaran

Levels that prevailed four years ago the target, says Murli Deora

Murli Deora

KOCHI: The Union Cabinet will take a decision on effecting another round of cut in the prices of petroleum products “very soon.” “There is certainly a case for such a reduction at this point,” Minister for Petroleum and Natural Gas Murli Deora told The Hindu here on Wednesday. The government wanted to restore the petroleum prices to levels that prevailed four years ago, he said.

Though he declined to spell out the figures, it is learnt that the prices would be brought down by Rs. 5 a litre with respect to petrol, and Rs. 2 for high speed diesel.

The government had cut the prices of petrol and diesel on December 5, even as international crude prices came down in recent weeks from the historic highs seen earlier in the year.

Mr. Deora said there were persistent demands from within the Congress for an immediate lowering of the prices of petroleum products.

The Left parties had, meanwhile, spoken of agitations to force the government to declare a price reduction.

The Minister said under-recoveries with respect to petrol, diesel, kerosene (supplied through the public distribution system) and liquefied petroleum gas (LPG) amounted to Rs.77,123 crore in 2007-08 and Rs.92,853 crore during April-September of 2008. He said these could be of the order of Rs.1,50,000 crore in 2008-09.

He said the public sector oil marketing companies were serving 10.5 crore LPG consumers. Efforts were on to supply piped gas in up to 20 metros over the next five years. Mumbai and Delhi would have piped gas supply to benefit 1.2 lakh customers each soon.

‘Marker’ scheme to go

Mr. Deora said the kerosene ‘marker’ scheme to detect adulteration, introduced in September 2006, would be discontinued: there were differing views on its efficacy. The scheme involved doping kerosene with a marker at 5 PPM level before release. Addition of the doped kerosene to petrol or diesel even to the level of 1 per cent could be traced.

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