The expected hike in petroleum products is unlikely this week with Petroleum Minister Mani Shankar Aiyar leaving for Norway on Tuesday. He is expected to be back only on September 6.
Senior officials told Business Standard that a decision on the petroleum hike would be taken only after that but the government would have to take a call soon since they cannot let the oil PSUs go into red in the second quarter too. The Indian basket of crude had crossed $60 some time back and stood at $61.5 at the last closing on August 26.
Aiyar is on a visit to Norway and Iceland after which he is likely to go to Dhaka for a day on September 5.
Officials said while petrol prices were likely to be raised in the range of Rs 2-2.50 a litre, diesel prices might go up by Rs 2. The Cabinet would also have to decide on a hike in LPG prices. Officials said the hike was expected to be around Rs 10.
The petroleum ministry had also asked for lowering customs duties on crude oil instead of petroleum products but this was rejected. Besides, the proposal to set up a price stabilisation fund through money coming from cess on crude oil was not likely to be accepted especially since large chunk of this fund was used for subsidising the fertiliser industry.
Petrol is sold at Rs 3.63 a litre below the import parity price while diesel is under-priced by Rs 4.15 per litre.
Cooking gas was being sold at a loss of Rs 92 per cylinder and Rs 11 was lost on the sale of every litre of kerosene.
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