Petro Min to seek Cabinet nod on reviewing fuel rates

The Petroleum Ministry will go to the Cabinet next month seeking a decision on reviewing petrol and diesel prices even though kerosene and LPG continued to be sold at a loss.      

"It is true that margins on petrol and diesel have turned positive but there are still huge under recoveries on kerosene and LPG," Petroleum Secretary R S Pandey told the Economic Editors Conference here.     

He said fuel retailers — IOC, BPCL and HPCL — were making a profit of Rs 8.17 a litre on petrol and Rs 0.65 per litre on  diesel, but were losing Rs 21.54 a litre on kerosene and Rs 330.28 per LPG cylinder.    

"Overall, there still are under recoveries," he said.     

Besides, the three companies in the first half of the current fiscal posted a net loss of Rs 14,431 crore. They will end this year with about Rs 1,10,000 crore revenue loss on fuel sales.     

"Therefore, whenever government has to take a view, all these issues will have to be considered. No decision has yet been taken, but we are going to the appropriate committee of the Cabinet within a comprehensive picture for a appropriate decision," he said.     

Pandey added Petroleum Minister Murli Deora had stated that a revision in fuel prices was under consideration and a decision will be taken in due course.     

"Revision does not necessarily mean a cut in prices. We will have to wait on which products a reduction will be effected, by how much and when," Pandey said.     
"Government will have to take a comprehensive view... What government will decide we cannot anticipate today," Pandey added.