Empowered Group of Ministers (EGoM) on fuel prices, which set the price of diesel, cooking gas and kerosene will meet May 11 to consider the proposal of the ministry of oil to raise prices in R5 per liter of diesel - the first increase since June last year. The ministers also increase the price of cooking gas and kerosene.
The government last increased the price of diesel by 2 rupees per liter on June 26, the day of the release of gas prices. Oil prices have risen about $ 75 a barrel after more than $ 120 a barrel.
Executives in oil companies managed by the state said they would meet soon to raise gasoline prices for the seventh time since June last year. While oil companies are free to raise gasoline prices, they have not raised rates since January, when the government has informally requested to await the Assembly elections were over.
"The final decision on the amount of the increase would be taken only after government approval. After all, government is the majority shareholder. In some companies, indirectly holds a stake of 80-90%," said an official on condition of anonymity. The three state-owned companies control more than 95% of the activity of retail of domestic fuel.
"As public companies, we can not spend the whole burden to consumers. Even after the increase in gasoline prices will be lower than market rates," an officer of a state oil company has said, on condition of anonymity. fuel companies to sell gasoline on a liter eight RS below the market in New Delhi.
Officials said that the government has the political will to exempt diesel at this stage, because that would mean Rs 18 per liter jump in prices, inflation also gives the fuel handle the opposition. "Even if the prices of diesel R 5 liters immediately after installation of the elections are politically difficult," said one of them, on condition of anonymity.
It 'may EGoM delayed or during the first meeting would be uncertain. But the rising price of diesel is inevitable in May or other companies under-recoveries (revenue loss) will touch 200,000 crore this year, "the official said. Diesel constitutes 60% of the size of firms in tax loss selling fuel at below market prices.
Authorities said the prices of cooking gas and kerosene could also consider marginally. Kerosene, fuel poor, to see an increase in R 3 per liter, while the domestic gas price could increase by 50 per cylinder. IndianOil, the largest retailer in India of fuel about 50% of the volume market, lost 29.7 per liter of kerosene and 330 per cylinder of cooking gas
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