Srinagar: The government ruled out any immediate increase in petrol and diesel prices on 18 June, despite a spurt in international crude oil prices.
“We have no plans to hike prices of petrol or petroleum products for the time being,” Union Petroleum Minister Murli Deora told reporters here.
Deora, who chaired a regional meeting of Jammu and Kashmir, Himachal Pradesh and Uttarakhand, said reviewing prices of petro products was a continuous process.
Prices of petroleum products have not been reviewed since February. Global crude prices have risen 10-12% since mid-February when petrol prices were slashed by Rs2 a litre and diesel by Re1 per litre.
In response to a question, Deora said the Centre was yet to take a final decision on the quantum of oil bonds to be given to state-run oil marketing companies.
“This is under discussion... we are still to meet the finance minister. How much, we can’t say (but) we will try our best to get the maximum,” he added.
The government’s refusal to allow companies such as Indian Oil Corp, BPCL and HPCL to raise prices is likely to cause a revenue loss of more than Rs50,400 crore this year, according to industry estimates.
At least one-third of this projected on fuel sale will be borne by upstream firms like ONGC, while the government will also share part of the burden by way of compensating fuel retailers through issue of oil bonds. The rest will have to be split between the retailers and the consumers.
After talks between finance and oil ministries, the Cabinet will decide on the bonds to be issued to IOC, BPCL and HPCL as also the need for raising prices.