No cut in fuel prices now because oil cos are bleeding: Deora

New Delhi, Nov 12 (PTI) Government will consider reducing petrol and diesel prices once rupee-dollar parity and crude oil stabilise at levels sustainable to public sector oil companies, Petroleum Minister Murli Deora said today.
"Prime Minister has already said this, and I don't need to repeat that we cannot reduce prices just now because the oil companies are losing heavily," Deora said.

The rupee-dollar rate and international crude oil prices continue to be volatile and it would not be prudent to cut prices during such times, he said.

"We wanted to reduce prices but the rupee depreciation against the US dollar made things difficult," Deora said. Indian rupee has depreciated 20 per cent against the greenback since April.

Prime Minister Manmohan Singh had earlier this week stated that the Government would wait for public sector oil companies to break even on fuel sales before considering a price cut.

International crude oil prices have slid from an all-time high of USD 147 to USD 60 a barrel, but public sector oil companies continue to make losses on sale of diesel, domestic LPG and kerosene.

Though Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum have started making profit on sale of petrol, they lose about Rs 155 crore per day on sale of other three products.

Oil firms make a profit of Rs 4.12 a litre on petrol but lose Rs 0.96 on every litre of diesel, Rs 22.40 per litre on kerosene and Rs 343.49 per LPG cylinder.

Deora said a second tranche of oil bonds for the state oil firms was expected next week. "There were differences over calculation of revenue loss. Finance Minister P Chidambaram is very cooperative and I hope more bonds will be issued next week."

Source: PTI