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September 06, 2007 13:51 IST
Government-run oil companies have demanded a hike in prices of petrol and diesel by Rs 2.90 per litre and Rs 4.68 a litre in line with the rise in cost of raw material (crude oil).
"The public sector oil marketing companies (Indian Oil [Get Quote], Bharat Petroleum and Hindustan Petroleum) have sought increase in the prices of sensitive petroleum products namely petrol, diesel, PDS kerosene and domestic LPG," Petroleum Minister Murli Deora told Lok Sabha on Thursday.
The average price of Indian basket of crude oil during 2007-08 (upto August) has increased to $68.34 per barrel as compared to 62.46 dollars a barrel during 2006-07.
The oil companies, he said, have sought an increase of Rs 2.90 per litre in petrol prices, Rs 4.68 a litre in diesel, Rs 15.47 per litre in PDS kerosene and Rs 174.75 per cylinder in domestic LPG.
"Government has been taking all possible measures to ensure that there is no hardship to the common man," Deora said, but did not clearly state if fuel prices would not be raised at all.
The burden of increase in international oil prices would be shared equitably amongst three stakeholders -- government, state-run oil companies and the consumers -- "to protect the interest of common man and vulnerable sections of the society," he said.
Government would issue oil bonds to oil companies to compensate them for one-third of their losses on fuel sale, while upstream firms like ONGC [Get Quote] would sell crude oil at a discount to cover for an equivalent revenue loss.
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