The Hindu Business Line : GoM to study petro products retail pricing

A decision on retail prices of petroleum products could be a month away. The Prime Minister, Dr Manmohan Singh, today said that he has constituted a Group of Ministers to examine the issue and report back to the Union Cabinet within one month.

“The Cabinet did discuss this matter. I have appointed a GoM to report back to the Cabinet within one month,” he told newspersons aboard his aircraft, according to the transcript of his on-board media interaction made available here. The Prime Minister was on his way to Singapore to attend the ASEAN Summit.

State-owned oil marketing companies (OMCs) – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation – together are losing about Rs 250 crore per day on sale of petrol, diesel, domestic cooking gas and kerosene, selling these products below the cost price. The Government has put a cap on the retail prices of these products, to cushion the impact of volatile crude prices . The Indian crude basket on Monday stood at $ 88.78 a barrel.

The desired increase in retail selling price in Delhi for the current fortnight was Rs 8.75 per litre on petrol, Rs 9.90 per litre on diesel, Rs 17.10 per litre on kerosene, and Rs 212 per cylinder on LPG. The Petroleum Ministry has been trying to work out a package to bail out the OMCs. The options being considered include a hike in petrol, diesel prices; issuance of oil bonds, and duty rejig.

Free Trade pacts

On the issue of free trade agreements (FTA), the Prime Minister said, “There are some problems in giving final shape to the FTA with the ASEAN countries. These essentially involve the extent of concessions we can give on some sensitive products. We hope to can sort these out.”

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