Mumbai, Jan 17 (ANI): Commenting on the recent hike in petrol prices, Union Petroleum Secretary S. Sudarshan on Monday said the government will not increase the price of diesel since this would burden the consumers.
Speaking on the sidelines of a seminar on 'Achieving E and P Objectives' organised by International Association of Drilling Contractors, Sudarshan said that it would be difficult in the present circumstances for the government to pass on the entire burden to consumers.
"I think it would be extremely difficult in the present circumstances for the government to pass on the entire burden to the consumer. The burden sharing mechanism is that the part will be contributed by the government, part will be contributed by the upstream and part should be absorbed by the consumer, so let see how it goes along," said Sudarshan.
He also that added burden sharing mechanism would be partly distributed among the upstream, and by the government and the consumers' vis-à-vis absorbing the increase in the petrol price.
"720 billion would be the under recovery if crude prices remain at present levels. So we have already taken decision that in order to safeguard the interest of the upstream companies. Upstream companies will not contribute more than one third. So one third of 720 billion will be contributed by ONGC, Oil India and GAIL," said Sudarshan.
"We expect bulk of the balance to be contributed by the government. Government has already given 130 billion in the current year and we expect bulk of the balance under recovery should be contributed by the government," he added noting that the petrol is an end user commodity; as such it would not contribute to the inflation on essential commodities.
State-owned oil companies on Saturday night raised petrol prices by Rs 2.50-Rs 2.54 per litre.
Indian Oil Corporation (IOC) raised petrol prices by 2.50 per litre, while Hindustan Petroleum (HPCL) hiked rates by 2.54 rupees a litre. Bharat Petroleum has raised price by 2.53 rupees per litre.
Petrol at IOC outlets in Delhi will now cost 58.37 rupees a litre. The fuel at HPCL and BPCL pumps will be sold at 58.39 rupees per litre.
State-owned firms also hiked Aviation Turbine Fuel (ATF) prices by two per cent. (ANI)