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

New Delhi, Nov 12 (PTI) Indian 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 on Wednesday.

"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." PTI ANZ
SAK