In wake to recover past revenue losses that is up to 5,000 crore, oil firms in national capital New Delhi are likely to plan to hike petrol prices just on the day when on this month the Parliamentary budgetary session end.
State oil firms does not revise the fuel price without permission of Oil Ministry, and as per a Cabinet decision, the ministry not allowed them to freely raise petrol prices because of political customs.
From the last December, any change on fuel prices has not forward due to political pressure and fear of inflation that caused huge losses to Oil Firms.
“The government is not willing to compensate us for our losses on petrol as it is a deregulated fuel. We can’t absorb the losses in our accounts. We have to pass it to consumers in small installments,” an official source of oil company said.
Presently, petrol rate is 65.64 per litre in New Delhi, and as per demand of oil companies, if petrol prices are increased by 8 a litre, 7 per litre of hike plus 1 per litre additional hike for covering five-month bearing losses, the net price hike would be 9.6 per litre.
According to source, along with petrol, State fuel retailers are also losing 13.91 per litre on diesel, 31.49 per litre on kerosene and 480.50 per cylinder on cooking gas.
Seeing the huge losses bearing by state oil firms, meanwhile, after the Parliament session the ministry is likely held a meeting of the empowered GOM.
The ministry officials told reporters, GOM meeting would be based on issues whether to raise prices of kerosene, diesel and cooking gas or not. During meeting, ministers also discuss about exemption from sharing oil subsidy burden to oil marketing companies, have a revenue loss of 1,38,541 crore in 2011-12.
Beside this, there are no chances in hands of oil ministry to rule out political consideration over issue of price hike because of forthcoming presidential elections.
There is also tough situation for oil firms that unable to raise rates in Punjab, Uttar Pradesh, Uttarakhand and Goa where the UPA government held victory in assembly elections.
Even they does not hike price after assembly elections as the government has fear of crucial Union budget in Parliament from side of opposition such as Trinamool Congress and DMK.
Over all, firms are depending on the government compensation subsidy. They asked it that whether to compensate for their losses, otherwise allows doing as they want to pump prices of petrol with market rates.
