Government in no mood to revise oil prices

Sujay Mehdudia

NEW DELHI: The demand for revising fuel prices in view of the declining prices of crude oil in the international market is growing stronger by the day. But the Assembly elections and the prospect of the oil companies making a profit have encouraged the government to adopt a wait-and-watch policy.

At the same time, Petroleum Secretary R. S. Pandey on Thursday told journalists that the government was not considering reducing prices of petrol and diesel. It was in fact planning to use the profits earned on the two auto fuels to make up a part of the hefty losses on the sale of domestic LPG and PDS kerosene.

The Petroleum Ministry and Petroleum and Natural Gas Minister Muril Deora have been under strong pressure from the OMCs not to revise the prices. They argue that they should be allowed to accumulate profits from the sale of petrol and diesel for a while to compensate for the subsidy on LPG and kerosene, an argument that seems to have found favour with the government and Mr. Deora.

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