New Delhi, Nov 7 (UNI) Petroleum Minister Murli Deora today said the global fuel scenario is under close examination and any decision to cut domestic prices of kerosene, LPG and petrol would be taken only after this scrutiny.
Mr Deora said the government is examining each form of fuel separately for any cut in prices, while informing that LPG and kerosene form 66 per cent of the total petroleum products.
Petrol is the only commodity that has shown a slight over-recovery of Rs four per litre. LPG has a under-recovery of Rs 102 per cyclinder and Kerosene Rs 14 per litre, Mr Deora said on the sidelines of the signing of coal Bed Methane (CBM) contracts under the third round of NELP.
Petroleum Secretary M S Srinivasan said the country is still reeling under a huge under-recovery of Rs 27,000 crore.
The Minister had said "We will be very happy to reduce prices but first we have to examine the impact of the fall in international prices,". For any decision to be taken, the price per barrel in the international market has to be less than 52 dollars.
"We have to see as to what extent the fall has helped us (bridge loss on fuel sales)," he added.
Although the international oil prices have fallen from a high of over 75 dollars a barrel in August to just over 56 dollars per barrel now, oil companies continue to make losses on sale of diesel, LPG and kerosene.
"We are working out the arithematics to see if there is a scope for any reduction," he said.
The Minister said a decision on cutting petrol and diesel prices would depend on the extent of oil bonds the Government will give oil companies to cover for losses on LPG and kerosene sale and the contribution to be made by upstream firms like ONGC.
The Government is to issue oil bonds worth Rs 28,300 crore to oil companies for the full fiscal and issued first tranche of bonds worth Rs 5,000 crore last month.
Two more tranches of similar amount are to be issued in November-December to cover for losses on LPG and Kerosene.
The Minister said he has also written to Finance Minister P Chidambaram for extending government subsidy on domestic LPG and kerosene for an indefinite period.
UNI/RT RA RS1735
Mr Deora said the government is examining each form of fuel separately for any cut in prices, while informing that LPG and kerosene form 66 per cent of the total petroleum products.
Petrol is the only commodity that has shown a slight over-recovery of Rs four per litre. LPG has a under-recovery of Rs 102 per cyclinder and Kerosene Rs 14 per litre, Mr Deora said on the sidelines of the signing of coal Bed Methane (CBM) contracts under the third round of NELP.
Petroleum Secretary M S Srinivasan said the country is still reeling under a huge under-recovery of Rs 27,000 crore.
The Minister had said "We will be very happy to reduce prices but first we have to examine the impact of the fall in international prices,". For any decision to be taken, the price per barrel in the international market has to be less than 52 dollars.
"We have to see as to what extent the fall has helped us (bridge loss on fuel sales)," he added.
Although the international oil prices have fallen from a high of over 75 dollars a barrel in August to just over 56 dollars per barrel now, oil companies continue to make losses on sale of diesel, LPG and kerosene.
"We are working out the arithematics to see if there is a scope for any reduction," he said.
The Minister said a decision on cutting petrol and diesel prices would depend on the extent of oil bonds the Government will give oil companies to cover for losses on LPG and kerosene sale and the contribution to be made by upstream firms like ONGC.
The Government is to issue oil bonds worth Rs 28,300 crore to oil companies for the full fiscal and issued first tranche of bonds worth Rs 5,000 crore last month.
Two more tranches of similar amount are to be issued in November-December to cover for losses on LPG and Kerosene.
The Minister said he has also written to Finance Minister P Chidambaram for extending government subsidy on domestic LPG and kerosene for an indefinite period.
UNI/RT RA RS1735
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