International oil prices have a decisive role in domestic pricing says Deora

December 16th, 2008 - 8:29 pm ICT by ANI  

New Delhi, Dec 16 (ANI): Union Petroleum and Natural Gas Minister Murli Deora today said that as India imports over 75 per cent of its crude oil requirement, the international oil prices have a decisive role in the domestic pricing.
In a written reply to a question by Raj Mohinder Singh Majitha and Shivanand Tiwari, Members of Parliament in the Rajya Sabha today, the Minister said, “Indian Basket of crude oil, which averaged $79.25 per barrel during 2007-08, had gone up to $142.04 per barrel on July 3.
“International prices have come down since August 2008 and the average price of Indian Basket of crude oil during November, 2008 was $ 50.91 per barrel and the average price during 2008-09 (up to December 10) was $ 100.34 per barrel,” he added.
He also emphasized that the benefit of softening of international oil prices has been partly offset by the recent depreciation of the rupee by around 25 per cent.
Deora further told the House that as an interim measure, the Government has reduced the prices of petrol and diesel by Rs. 5/- per litre and Rs. 2/- per litre respectively at Delhi with corresponding reduction in the rest of the country, effective December 6.
“The revised retail prices (at Delhi) of petrol and diesel are Rs. 45.62 per litre and Rs. 32.86 per litre respectively. However, based on the Refinery Gate Price (RGP) computed by the Indian Oil Corporation, for the first fortnight of December, 2008, the likely retail selling prices at Delhi works out at Rs. 35.73 per litre for Petrol and Rs. 31.83 per litre for Diesel,” he said.
The Minister also informed that further reduction in the prices of petrol and diesel has not been found feasible at this stage in view of the continuing under-recoveries on the sale of PDS kerosene and domestic LPG.
The Public Sector Oil Marketing Companies (OMCs), namely, Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPC) and Hindustan Petroleum Corporation (HPC) have declared combined losses of Rs. 14,431 crore during the first six months of 2008-09. Their total under-recoveries on the sale of sensitive petroleum products are projected to be Rs. 1,10,381 crore during 2008-09.
“Their combined borrowings at the end of November 2008 stood at Rs. 1,15,000 crore with an interest burden of Rs. 8,100 crore during 2008-09. The financial health of the OMCs needs to be protected for ensuring the energy security of the country,” the Minister further added. (ANI)

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