Govt not considering diesel price
decontrol : Deora
16 Nov, 2010, 1516 hrs IST , PTI
NEW DELHI: The Government is not
considering freeing diesel pricing from its
control yet, Oil Minister Murli Deora said in
Parliament today .
" Currently , there is no proposal under
consideration to fully decontrol the price of
diesel , " Deora said in a written reply to a
question in the Rajya Sabha here .
State - owned Indian Oil Corp , Hindustan
Petroleum Corp and Bharat Petroleum Corp
sell diesel at a rate which is Rs 2 .62 per litre
below its imported cost , he said.
The Government had, on June 26, decided to
give public sector oil firms freedom to price
petrol and diesel in line with cost . However ,
while petrol pricing was freed with immediate
effect , for diesel it was stated that complete
decontrol will be done in stages .
Deora said the move resulted in price of petrol
going up by Rs 3 .50 a litre in Delhi .
Besides , the government decided to raise the
diesel price by an ad - hoc Rs 2 per litre even
though the difference between the domestic
retail price and imported cost of the fuel was
almost twice that.
Since then , diesel rates have not been
changed, Deora said , without saying as to
when diesel pricing will be freed completely .
Meanwhile, petrol price has risen by Rs 1 .48
per litre on top of the June 26 increase, he
said .
Deora said that for the current fiscal , the
public sector oil marketing companies were
projected to lose Rs 72, 000 crore in revenues
on selling petrol, diesel , domestic LPG and
kerosene below cost .
But after the June 26 decision , when kerosene
price was raised by Rs 3 per a litre and LPG
rates went up by Rs 35 per cylinder , the
projected revenue loss has come down to Rs
53, 000 crore , provided crude oil ( raw material
for making these products ) stays around USD
75 per barrel, Deora added .
" However , the OMCs ' actual under- recovery
( revenue loss ) will depend upon the
movement of international oil prices during
the current financial year , " he said.
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