Deora meets PM on oil prices, hints at hike

New Delhi, Nov 2 (UNI) Petroleum and Natural Gas Minister Murli Deora met Prime Minister Manmohan Singh this evening to apprise him of spiralling global crude oil prices and subsequent losses suffered by oil PSUs in the country and hinted at fuel price hike.

In his second meeting in two days, Mr Deora expressed his concern about the global oil prices that topped 96 dollars a barrel this week and which has impacted Indian oil marketing companies.

Indian Oil Corporation (IOC) had earlier sought an increase in prices of petrol, diesel, domestic LPG and PDS kerosene as spiralling global oil prices put burden on them and might result in a revenue loss of over Rs 8,500 crore this fiscal. Similar losses are expected to be incurred by other oil companies.

While the government and oil companies were bearing their share of burden, the consumers have so far been spared from any hike in fuel prices despite crude oil touching new highs every day.

Yesterday, Mr Deora also met Finance Minister P Chidambaram and tried to wrangle a solution to provide respite to oil companies.

Public sector oil firms are currently losing Rs 3.90 per litre on petrol, Rs 6.22 a litre on diesel, Rs 15.99 per litre on kerosene and Rs 174.17 on every 14.2-kg LPG cylinder. These losses would widen to Rs 3.94 a litre on petrol, Rs 6.50 per lite on diesel, Rs 16.42 a litre on kerosene and Rs 207 per cylinder on LPG from November 1.

UNI