New Delhi: The government on 25 May 2007 ruled out an immediate increase in petrol and diesel prices in line with rise in international oil prices.
“There is no such proposal (under consideration). No, there will not be any hike (in fuel price) now,” Petroleum Minister Murli Deora told reporters here.
Petrol is currently being sold at a loss of Rs5.60 a litre and diesel at Rs4.41 per litre. Public sector firms are also losing Rs14.64 on sale of every litre of kerosene and Rs163.75 per litre on LPG.
“Our daily loss (on fuel sale) is Rs40 crore,” Bharat Petroleum Corp Ltd (BPCL) chairman and managing director Ashok Sinha said.
Petroleum Secretary M S Srinivasan also said there was no immediate need for raising fuel prices as appreciation in rupee against the dollar had helped reduce crude oil import cost and the widening gap between crude and petroleum products in the international markets was giving good refining margins.
“Refining divisions are making good profit and partly making up for the losses of marketing divisions,” he said.
“Overall, we expect total under-realisation on fuel sale for the full fiscal 2007-08 at Rs50,400 crore. But for rupee appreciation and high refining margins, this should have been Rs75,000 crore,” he said.