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"We will watch (crude oil) prices (to see) if further reduction is possible," Home Minister P Chidambaram said replying to supplementaries during the Question Hour in Rajya Sabha.
Government earlier this month cut petrol price by Rs 5 a litre and diesel by Rs 2 per litre as crude oil prices dipped from an all-time high of USD 147 a barrel in July to under USD 45 a barrel.
Chidambaram, the former Finance Minister who is answering questions pertaining to Finance Ministry on behalf of Prime Minister Manmohan Singh who now holds that portfolio, said the Government would look into demands for further reduction in auto fuel prices.
Even after the price cut, public sector oil firms were making a profit of Rs 9.98 on sale of every litre of petrol and Rs 1.03 per litre on diesel. The further softening in global oil prices has seen these profits widen to Rs 11.48 per litre on petrol and Rs 2.92 a litre on diesel, officials said.
The oil companies, however, continue to lose Rs 17.26 per litre on PDS kerosene and Rs 148.38 per domestic LPG cylinder.
Indian Oil, Bharat Petroleum and Hindustan Petroleum are together projected to lose Rs 111,500 crore in revenues this fiscal on fuel sales, they said.
Oil Minister Murli Deora in a separate reply said the December 6 reduction was only an "interim measure".
"Further reduction in the prices of petrol and diesel had not been found feasible (on December 6) in view of the continuing under-recoveries (losses) on sale of PDS kerosene and domestic LPG," he said.
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we are still very far from effective governance. indians have successfully rigged the price of rice - and making the world pay for it - just to project a higher GDP percentage. higher support price for rice wheat on the back of record grain production means only one thing - higher gdp! so congratulations to FM in successfully skrewing up indian chances. we will now face the wrath of developed nations playing realpolitik with us on some other front.same story with petrol. we have been shielded from high prices at the cost of a few industries and also hurtng us slowly. just for electoral gains.
I dont understand this AAM ADMI sentiments. Price of petrol as well as Diesel affect all classes of people. Are there any Autos running on Diesel ?. I have not heard of it. I feel the price should vary according to the international market. Its good that govt is going off from regulating fuel prices.
Wow..Wow..wht a luck they have..when whole world is suffering from economic crisis..these oil companies are making profit @ 25%..Wht to say more..why government is not thinking tht every single thing is connected with transportation
I do not encourge reducing the ptrol prices at least. It will increase the cars usage. now the country is facing a big roads infracture problems and any increase in the cars usage will further worsen the situation. Cas are for the affluent society. Why we should not cllect more from them by way of more cost on the petrol either to reduce the cars usage or to add this additional money to National Exchequer and utilise for the nation building up. When neighbouring China is enouraging the cycle usage and public transport more why can not we. This is a serious question. Why the nation leaders do not think>
simple answer. This is India. That is China. That country will enforce any decision on public either by hook or crook. In India we cannot even prevent public littering and smoking etc. Both cuntry's political system is extremely different. So, please do not compare with China. Do U tolerate that political system?
The "AAM ADMI UPA govt has cut the price of the "air plane fuel" which is the ultimate "aam admi fuel" by another 11%. So why reduce the price of diesel. Sonia "Antonietta"- the reigning UPA queen will say "WHY CANN'T THE AAM ADMI GO BY PLANE IN PLACE OF BUS???? I GO EVERY WHERE BY PLANE AND IT IS SO COMFORTABLE!!!!