Petroleum minister S Jaipal Reddy has sought an immediate rise in the prices of diesel, kerosene and domestic liquefied petroleum gas.The empowered group of ministers on fuel pricing was likely to meet soon, he said.
The finance minister Pranab Mukherjee-headed group was first supposed to meet on May 11, immediately after the end of West Bengal Assembly elections.
However, it got deferred. The group was then said to meet on June 9, but no such meeting happened.
"I have been pressing for it...They have to take a call soon," Reddy said, adding the oil marketing companies had already lost Rs. 45,000 crore (Rs. 450 billion) this quarter.
Shares of the OMCs rose on the news. On the Bombay Stock Exchange, shares of Indian Oil Corporation rose 2.71
per cent to close at Rs. 322.55. Hindustan Petroleum and Bharat Petroleum gained 1.52 and 1.65 per cent, respectively, to close at Rs. 371.50 and Rs. 614.90.
The OMCs buy crude oil at market rates, but are required to sell diesel, kerosene and LPG at government-subsidised prices, resulting in losses.
These companies lose Rs. 12.64 on every litre of diesel, Rs. 26.16 on every litre of kerosene and Rs. 381 per LPG cylinder.
Diesel price has not been raised since June 26 last year. At these rates, the OMCs could end up this financial year with an all-time-high loss of Rs. 165,000 crore (Rs. 1,650 billion).
These companies are apprehensive that prices won't be increased, once the monsoon session of Parliament begins in mid July.
