Oil Ministry may allow state-owned oil mkt firms to raise prices to help offset the rising transport costs
“This is additional under-recovery for the oil marketing companies. The prices were last revised around 2002, so it’s time for a revision,” a senior ministry official said, adding that the suggested quantum of hike was 4-10 rupees per cylinder, depending on the distance of transportation.
A final decision by Petroleum Minster M. Veerappa Moily is still pending on the matter. “It is most likely that the companies would be allowed to revise the transport costs on an annual basis. That seems most feasible, so that’s what we have recommended,” the official said.
In 2002, the government had approved three slabs of delivery charges of 10 rupees per cylinder on distance upto 80 km from plant, 12 rupees on distance between 81-110 km and 14 rupees beyond 110 km.
“The hike may be passed on to the consumers so we have to take care on the quantum and timing of the decision,” another oil ministry official said.
At present, public sector oil marketing firms–Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd–sell liquefied domestic gas at a loss of 542.71 rupees per cylinder of subsidised cooking gas. -Cogencis