The administration may increase the price of petrol, diesel, liquefied petroleum gas(LPG) as well as kerosene oil at the same time by the coming week with Oil Minister S Jaipal Reddy today stating “hard and aching” verdicts need to be announced.
But, the oil ministry is cautious of the reality that if oil companies are permitted to lift up the petrol rates today or tomorrow, the political conflict of the unpopular move may force the Cabinet’s hands into not lifting up the price of diesel, liquefied petroleum gas and kerosene oil prices when it may meet by the coming week.
Reddy said that there are no instantaneous plans to lift up costs of different oil products comprising petrol.
With oil companies missing approximately Rs.560 croreon a daily basis on saleof diesel and LPG and an added Rs 16 per day on petrol, the Oil Ministry is forcing for increasing prices once Parliament’s Monsoon Session closes today.
Reddy added that they are certainly confronting crisis of irregular magnitude.
He added that if prices are not increased, the oil firms will mislay almost Rs.200,000crore.
On the political opposition to increasing fuel prices, Reddy stated that fuel valuation was a common case of “politics shooting downpolitical economy”.
Reddy also said that he had forwarded a letter for the consideration of the Cabinet Committee on Political Affairs (CCPA) explicating the unstable state confronting the oil division.
Publicly owned fuel retail merchants are shedding more than Rs.5 per litre on sale of petrol, a commodity which was released from administrative control during June 2010 but whose prices have not moved concurrently with cost.
They market diesel at a loss of Rs.19.26 perlitre, LPG at Rs.347 per 14.2-kg cylinder in addition to kerosene oil at Rs.34.34 a litre.
“I have circulated terrible facts (about prices to Cabinet). Subsidy burden is very high… there is no escaping the very difficult and painful part of taking a decision on petroleum prices,” Reddy said.
In additionto increase in diesel, LPG and kerosene rates, the Oil Ministry is also trying to bound supply of subsidizedLiquefied petroleum gas cylinders to 4 to 6 household in a period of 12 months.