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CCPA decides on fuel price hike, announcement expected by noon

CCPA decides on fuel price hike, announcement expected by noon
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First Published: Wed, Jun 04 2008. 10 33 AM IST
Updated: Wed, Jun 04 2008. 10 33 AM IST
New Delhi: The crucial meeting of Cabinet Committee on Political Affairs today deliberated on the need of raising fuel prices in view of spurt in global oil prices, though there was no official word on the decision as yet.
According to sources, a decision has been taken, but details will only be announced later in the day, possibly at a noon news conference.
The CCPA meeting, chaired by Prime Minister Manmohan Singh, attended by external affairs minister Pranab Mukherjee, defence minister A K Antony, finance minister P Chidambaram, petroleum minister Murli Deora, railway minister Lalu Prasad and road transport minister T R Baalu.
Earlier a report in an English-language daily said petrol prices were likely to be raised by Rs3 per litre and diesel prices by Rs2 per litre, while for LPG a formula would be worked out where each consumer would be entitled to 8 cylinders per year at the current subsidised rate and any extra cylinder would have to be purchased at the marke price of around Rs650 per cylinder.
Petrol and diesel prices were last raised in February 2008 when the Indian basket of crude oil was at $67 per barrel. Today it is at $124 per barrel.
State-run Indian Oil, Bharat Petroleum and Hindustan Petroleum were together projected to lose Rs2,46,600 crore on sale of petrol, diesel, domestic LPG and PDS kerosene in 2008-09 in absence of any price hike or duty cuts.
The three firms were losing Rs725 crore per day on fuel sales and had warned of fuel shortages from August when BPCL and HPCL were slated to run out of cash to import crude. IOC had funds to last till September.
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First Published: Wed, Jun 04 2008. 10 33 AM IST
More Topics: Oil prices | Crude oil | Manmohan Singh | CCPA | LPG |