Oil PSUs to lose Rs 1,22,000 cr

Despite the recent steep fuel price hike, state-owned oil firms will lose a whooping Rs 122,000 crore on diesel, domestic LPG and kerosene sale this fiscal, Oil Minister S Jaipal Reddy said today.

"We were compelled to increase prices," he said in Lok Sabha where members criticised the recent Rs 3 per litre hike in diesel, Rs 2 a litre increase in kerosene and Rs 50 per cylinder hike in LPG rates.

Price of international oil, on which India is 80% reliant to meet its needs, is rising, he said, adding the average price of crude for the current financial year is $113 per barrel.

The government has cut customs and excise duties on crude oil and products coupled with a "moderate increase", he said adding that in spite of the increase the oil companies' under recoveries would be Rs 1.22 lakh crore for the current fiscal.

Replying to a supplementary, he informed the House that in last three years, the prices of diesel have been increased four times while prices came down twice.

Similarly, in case of LPG, prices were increased four time and reduced only once.

Giving a comparison of prices in the neighbouring countries, he said petrol price is highest in India. It is currently Rs 63.70 a litre (Delhi) compared to Rs 41.81 in Pakistan, Rs 50.30 in Sri Lanka and Rs 44.80 in Bangladesh and Rs 43.59 in the US.

Prices, however, in European nation are much higher as compared to India.

In case of LPG and Kerosene, prices in India are lowest compared to neighbouring nations. While diesel prices are comparable.