New Delhi: Government is likely to review in mid-July prices of petrol and diesel, which have not been changed since February despite a spurt in international oil prices.
"Once we have the trend for first quarter (April-June), we will review the situation. In early July, we hope to get a consolidated view after consultations with industry and the Left parties," PTI quoted a top oil ministry official a saying.
The review will throw the exact quantum of under-realisation of petrol, diesel, domestic cooking gas (LPG) and kerosene for the full fiscal and how this has to be borne by all the stakeholders.
Atleast one-third of the projected Rs 50,400 crore revenue loss on fuel sale will be borne by upstream firms like ONGC, while the Government will also share part of the burden by way of compensating fuel retailers through issue of oil bonds.
The rest will have to be split between the retailers and the consumers, the official said.
International oil prices have risen 10-12 per cent since mid-February when petrol prices were slashed by Rs 2 a litre and diesel by Re 1 per litre.
"Once we have a consolidated view, we will go to the Cabinet, possibly in second or third week of July, for a decision," the official said. The Cabinet will decide on the quantum of bonds Finance Ministry will issue to Indian Oil, Bharat Petroleum and Hindustan Petroleum as also deliberate the need for raising petrol and diesel prices.
"You will have a decision in July," he said adding discussions on sharing of under-recovery on fuel sales will begin with Finance Ministry after July 2-3.
(With agency inputs)
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