Date:07/11/2008 URL: http://www.thehindu.com/2008/11/07/stories/2008110758101700.htm

National

No price cut on petrol, diesel

Sujay Mehdudia

NEW DELHI: Despite the slide in the price of crude oil in the international market, the Petroleum and Natural Gas Ministry on Thursday ruled out any cut on the retail price of petrol and diesel on the plea that oil marketing companies were still making losses on the sale of diesel, kerosene and domestic LPG.

“I am not aware of any proposal to cut fuel prices. At present, the reduction is not under active consideration,” Petroleum Secretary R.S. Pandey said.

He said margins on sale of petrol have turned positive, but there were under-recoveries on sales of diesel, domestic LPG and kerosene. Besides, the rupee-dollar parity and international oil prices were fluctuating on a day-to-day basis.

Incurring loss

State-run Indian Oil Corporation, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited are projected to lose Rs. 1,28,135 crore on fuel sales this fiscal.

However, for the first time in more than 12 months, oil companies have started making profit on sale of petrol, but they continue to lose Rs. 155 crore a day on diesel, LPG and kerosene sales.