Petroleum Minister Murli Deora, today said he would broach the subject of fuel pricing with Prime Minister Manmohan Singh later today 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.
A source had yesterday said that “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” that may entail a hike of Rs. 3 per litre in petrol rates.
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 crores 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.