New Delhi: UPA Chairperson Sonia Gandhi has asked the Government to try and avoid a fuel price hike though India’s oil companies are under tremendous strain because of global crude prices surging close to $100 a barrel, sources tell CNN-IBN.
Petroleum Minister Murli Deora met Gandhi and Prime Minister Manmohan Singh on Friday to discuss relief measures for the oil companies, which sell fuel at low rates.
"We hope to find a solution next week and we will do all that is possible to protect the interests of our companies," Deora said after meeting the PM. "There were several alternatives which were discussed: an increase in prices, reducing import duties on crude and reducing (excise) duties on products Government is considering all these."
Deora briefed Gandhi on the pressure on Indian oil companies because of international crude oil prices. It is estimated that under-recoveries made by oil companies would rise to over Rs 60,000 crore this year.
But with elections in Gujarat and Himachal around the corner, Sonia has asked the Centre to avoid a controversial decision for now.
The Government on October 11 decided to share with oil companies the Rs 54,935-crore bill caused by subsidising fuel prices low.
Reuters reports the Indian crude basket has risen by 145 percent since April 2004, but retail prices of petrol have gone up by just 29 percent and those of diesel by 40 percent.
Oil firms are currently incurring Rs 240 crore as loss per day on sale of petrol, diesel, LPG (cooking gas) and PDS kerosene.
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