Prime
Minister Manmohan Singh on Friday said India needs to rationalize the
prices of petroleum products for insulating the common people of their
effects.
Dedicating the Rs. 20,000 crore Guru Gobind Singh-Refinery, he said, with imports accounting for approximately 80% of the raw supplies, the spiraling prices of crude in the international markets put a serious strain on the import bill.
"We need to rationalize prices and at the same time ensure that the poor and needy are protected from the effects of such reasoning," he said.
State oil companies do not lifted diesel, domestic LPG and kerosene for almost a year in spite of the cost of raw materials rising by a quarter.
The Prime Minister said, to isolate the common people of the impact of rising oil, the government strongly a considerable part of the burden of pricing diesel, kerosene and domestic LPG below their market price.
"The challenges we confront the energy front is formidable. We need an adequate supply of energy at affordable prices. Domestic sources of crude oil and natural gas are inadequate to meet the growing demands of our rapidly expanding economy," Singh said.
The government had in June 2010 released gasoline prices of their control but PSU oil companies could not raise prices because of political pressure. Gasoline price of Rs. 65.64 a liter in Delhi is Rs. 9 short of its cost.
The government controls rates of diesel, domestic LPG and kerosene. Oil companies to sell diesel at a discount of Rs. 16.16 a liter, while they are losing Rs. 32.59 on sale from every liter of kerosene. A 14.2 kg domestic LPG cylinder, costs Rs. 570.50 less than its actual cost.
Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum lost about Rs. 138,800 crore in revenues in selling diesel, domestic LPG and kerosene below cost in 2011-12. This fiscal, the revenue loss is estimated at Rs. 208,000 crore.
Dedicating the Rs. 20,000 crore Guru Gobind Singh-Refinery, he said, with imports accounting for approximately 80% of the raw supplies, the spiraling prices of crude in the international markets put a serious strain on the import bill.
"We need to rationalize prices and at the same time ensure that the poor and needy are protected from the effects of such reasoning," he said.
State oil companies do not lifted diesel, domestic LPG and kerosene for almost a year in spite of the cost of raw materials rising by a quarter.
The Prime Minister said, to isolate the common people of the impact of rising oil, the government strongly a considerable part of the burden of pricing diesel, kerosene and domestic LPG below their market price.
"The challenges we confront the energy front is formidable. We need an adequate supply of energy at affordable prices. Domestic sources of crude oil and natural gas are inadequate to meet the growing demands of our rapidly expanding economy," Singh said.
The government had in June 2010 released gasoline prices of their control but PSU oil companies could not raise prices because of political pressure. Gasoline price of Rs. 65.64 a liter in Delhi is Rs. 9 short of its cost.
The government controls rates of diesel, domestic LPG and kerosene. Oil companies to sell diesel at a discount of Rs. 16.16 a liter, while they are losing Rs. 32.59 on sale from every liter of kerosene. A 14.2 kg domestic LPG cylinder, costs Rs. 570.50 less than its actual cost.
Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum lost about Rs. 138,800 crore in revenues in selling diesel, domestic LPG and kerosene below cost in 2011-12. This fiscal, the revenue loss is estimated at Rs. 208,000 crore.
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