HIKE IN PETROL PRICES IN OFFING

No move to de-regulate diesel; Oil cos say going tough

New Delhi: The petroleum minister, S. Jaipal Reddy, and the Indian Oil Corporation chairman, R.S. Butola, on Friday hinted at a petrol price hike. However, there is skepticism as to whether the government which was recently forced to roll back a hike in rail fares under political pressure from the Trinamul could effect a petrol price hike. “For those decisions, I will have to go to the meeting of the empowered group of ministers (egom),” Mr Reddy said.

The petroleum minister, Mr S. Jaipal Reddy, and the Indian Oil Corporation chairman, Mr R. S. Butola, on Friday hinted at a petrol price hike.

However, there is scepticism as to whether the government which was recently forced to roll back a hike in rail fares under political pressure from the Trinamul could effect a petrol price hike.

“For those decisions I will have to go to the meeting of the empowered group of ministers (egom),” Mr Reddy said on the sidelines of 7th Asia Gas Partnership Summit.

The PSU oil marketing companies (OMCS) have now started asking the government to once again declare petrol a regulated commodity and subsidise them for their losses if the gag on prices remain.

But Mr Reddy has denied any such plans.

“Petrol continues to be de-regulated. But we will have to go back to de-regulation fully, we are taking various factors into consideration. ” the minister added.

On diesel, he said that the government is not contemplating decontrol of diesel prices.

Meanwhile, Mr Butola said the oil PSUS had no resilience to absorb any more losses.

“We have requested the government to compensate us fully for the under-recoveries (on diesel, cooking gas and kerosene) and also the losses on petrol. If we are not, then we will have to seriously consider passing on the burden to customers,” said Mr Butola.

The IOC chairman said the under-recovery on petrol during the January-march 2012 quarter would be more than `750 crore for the company and it will be more than `1,300 crore for the entire industry.