No decision on oil prices till July

Noida, June 20 (UNI) Minister of Petroleum and Natural Gas Murli Deora today said the Finance Minister has been updated on the losses incurred by the oil PSUs because of the soaring prices and any further increase can only be made in July after due consultation with Mr P Chidambaram.

Last year, there was a burden of Rs 24,000 crore on the exchequer because of the losses of the oil PSUs. The minister was optimistic that this year it would be less. All further decisions on petrol and diesel hike would be made in July when the prevailing prices will be compared and the resultant loss being found, he added.

He also said the ball park figure for the year is estimated at Rs 51,000-55,000 crore.

Talking to reporters here today, Mr Deora also said consistent to the wishes of Congress President Sonia Gandhi and the objective of not hurting the common man, there would be no further increase in the prices of kerosene and gas as of now.

He also reiterated that after a two-hour long discussion recently held in Kashmir, it was decided that there would be no subsidies on gas prices but would look at the option of introducing smart cards for LPG.

On the differential system of pricing of oil in various states because of the state taxes involved, the minister said it was an area of concern and a solution for the same was needed to be found by the different finance ministers of the state and the finance officials at the Centre.

However, he said the relation of different prices in the NCR cannot be made an issue, because the NCR is an administrative acronym and has no tax implications.

''Oil taxes are a state issue and the prices between Noida and Delhi can differ because both the places in different states,'' said Mr Deora.

On a question as to whether Mr Anil Ambani had written to the Oil Ministry not to consider Mukesh Ambani's KG Basin bid, Mr Deora said, ''Everyone is free to make their representations. One brother had submitted his bid yesterday, the other brother will do so today.'' Mr Deora also informed the Rs 3,100 crore FDI for HPCL plant in Bhatinda has been approved by the FIPB and will come up before the Cabinet tomorrow.

UNI