The Hindu Business Line : Oil marketing cos seek hike in petro product prices

New Delhi, Aug. 16 The public sector oil marketing companies (OMCs) have sought another revision in the prices of petroleum products due to increase in international oil prices.

The Minister of State for Petroleum and Natural Gas, Mr Dinsha Patel, informed the Lok Sabha today that based on the increase in international oil prices the OMCs are suffering under recoveries on the marketing of these products – petrol, diesel, PDS kerosene and domestic LPG.

“Since passing on the entire impact of the steep increase in the oil prices to the consumers would have resulted in steep increase in the domestic prices, the Government has been taking all possible measures to ensure that there is no hardship to the common man on account of price rise,” he said.

The Government has adopted the principle of equitable burden sharing amongst three stakeholders, namely, the consumers, the PSU oil companies and the Government to protect the interest of the common man and the vulnerable sections of society. “The Government is closely monitoring the international oil prices and will continue to protect the interests of consumers,” he said.

Under recovery

During April-June quarter of the current fiscal (2007-08), gross under recovery being suffered by the OMCs – Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation was estimated at Rs 12,912 crore on the sale of four petroleum products. The under recovery on petrol is being estimated at Rs 1,553 crore, diesel Rs 4,633 crore, kerosene Rs 4,028 crore, and domestic LPG Rs 2,698 crore.

The Minister said that Indian Oil, which controls roughly half of the fuel market, is losing Rs 6.64 crore per day on sale of petrol, Rs 40.12 crore on diesel, Rs 30.55 crore on kerosene and Rs 15.90 crore on domestic LPG.