New Delhi: Government today ruled out an immediate reduction in petrol and diesel prices as state-run firms are still running into daily loss of over Rs400 crore despite softening in international oil prices.
“Where is the scope for reducing prices? Oil companies are still making losses,” said Petroleum Minister Murli Deora.
The drop in international oil prices has resulted in revenue loss of Indian Oil, Bharat Petroleum and Hindustan Petroleum dip to Rs400 crore per day from Rs450 crore a fortnight back.
“Oil companies continue to lose money on sale of petrol, diesel, LPG (Domestic) and kerosene. There has not been so much reduction in global prices to warrant a price cut,” Petroleum Secretary R.S. Pandey said.
The basket of crude oil India buys averaged $111.09 a barrel in the second fortnight of August as compared with $117.37 per barrel in the first fortnight of the month.
Based on an average price of the second fortnight of August, retailers are losing Rs6.31 per litre on petrol, Rs13.69 on diesel, Rs31.39 on kerosene and Rs312.58 per 14.2 per kg on LPG cylinder. Till last week, they were losing Rs7.07 per litre on petrol, Rs16.22 on diesel, Rs39.55 on kerosene and Rs348.89 per LPG cylinder.
The three firms are now projected to lose Rs165,300 crore in full 2008-09 fiscal, down from Rs184,801 crore projections of last week. A month back the losses were projected at Rs205,740 crore.
Pandey said the revenue loss of retailers will be fully compensated, through a combination of oil bonds and assistance from upstream firms like ONGC.