Murli Deora rules out imminent oil price hike

January 3rd, 2008 - 6:20 pm ICT by admin  

New Delhi, Jan 3 (ANI): Union Petroleum Minister Murli Deora on Thursday said that hiking fuel price in the country is not the only solution for losses being faced by the public sector oil companies, and other options in this regard are being discussed.

“Price hike is not the only solution. There are other options like excise duty cut that have been suggested by the Left. We’ve got to find the best solution,” Deora said.

Government would also focus on oil conservation as an answer to crude oil prices, he said.

Deora said that a Group of Ministers (GoM) will meet shortly to discuss fuel prices and to find a solution for the prevailing crisis.

“The Left (parties) are very cooperative. They have said they will assist in finding a solution for the present crisis,” he said.

On Wednesday crude oil prices touched an all-time high of 100 dollars a barrel thus triggering fears of more under-recoveries by oil Public Sector Undertakings (PSU).

According to reports, Indian Oil, Bharat Petroleum and Hindustan Petroleum are likely to lose over 697 billion rupees on sale of petrol, diesel, domestic Liquefied Petroleum Gas (LPG) and Public Distribution System (PDS) kerosene.

Meanwhile, the Indian Oil Corporation has announced that it will sell bonds worth 20 billion rupees this month to meet the shortfall in working capital. (ANI)

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