Govt not to hike oil prices despite surge in global rates

The government is not considering revising petrol and diesel prices despite a sharp rise in oil rates in international markets, as the devaluation of dollar against rupee has helped neutralise the global impact.

"The situation is not worrisome now," Petroleum Minister Murli Deora said when asked to comment on the crude oil prices jumping to $78 per barrel.

"There is no distress situation as the strengthening of the rupee against the dollar has helped us... The dollar has devalued (against the rupee) by about 10 per cent," he said.

The dollar devaluation has seen revenue loss incurred by state-run oil firms on fuel sales trimming to about Rs 96 crore per day from Rs 124 crore a day in the first half of October.

Indian Oil Corp (IOC) Chairman Sarthak Behuria said the oil companies were "comfortable" at the current level of oil prices and rupee-dollar rate."We can sustain these rates," he said.

IOC has seen its projected losses on fuel sales this fiscal coming down to Rs 19,790 crore from Rs 21,825 crore estimated earlier.

The company and its sister PSUs -- HPCL and BPCL, which have been barred by the government from revising fuel prices to keep inflation under check -- have almost broken even on diesel, on which they incur loss of Rs 0.07 per litre. They loss Rs 0.83 a litre on petrol.

On domestic LPG, these companies lose Rs 204.51 per 14.2-kg cylinder and Rs 16.14 on every litre of kerosene.