New Delhi: Petroleum Minister Murli Deora on Tuesday ruled out a cut in retail prices of petrol and diesel unless global crude prices dip to $52 per barrel.
"I would have been happy to reduce the prices of petrol and diesel but we have to work out to ensure there are no losses. At today's price, the oil marketing companies are still losing on most products except petrol," Deora said on the sidelines of a meet to announce awards of new coal bed methane (CBM) exploration blocks.
Petroleum Secretary MS Srinivasan said that oil marketing companies are expected to have under recoveries of Rs 27 billion in November at current global crude prices, with Rs 1.60 loss per litre of diesel, Rs 102 loss per cylinder of cooking gas or liquefied petroleum gas (LPG) and Rs 14.70 per litre of kerosene sold through the public distribution system.
"On 56 per cent of petroleum products sold, including diesel, kerosene and LPG, the oil marketing companies are facing under recoveries," said Srinivasan.
"There will be a case for price cut for diesel and petrol only if crude prices reach below $52 per barrel level. In the case of cooking gas, the prices are anyway frozen at levels of $28 per barrel of crude and kerosene at $33 per barrel," he said.
Of the under recoveries faced by oil marketing companies, Rs 7 billion is on diesel while Rs 20 billion is on domestic cooking gas cylinders and subsidised kerosene, the official stated.
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