No hike in petrol, diesel prices

The government on Thursday decided not to increase petrol and diesel prices, and issue oil bonds worth Rs 23,457 crore (Rs 234.57 billion) to partly compensate public sector oil companies for the losses incurred on fuel sales.

"We have kept our promise of not raising prices of sensitive petroleum products," Petroleum Minister Murli Deora told PTI after a meeting of the Cabinet.

The Cabinet decided to issue oil bonds worth Rs 23,457.24 crore to Indian Oil, Bharat Petroleum and Hindustan Petroleum to partly compensate them for the losses they would incur this fiscal for not raising the prices of petrol, diesel, LPG and kerosene in line with costs.

"The total under recovery on fuel sales is estimated at Rs 54,935 crore (Rs 549.35 billion), Of this, 42.7 per cent is being borne by the government by way of issuing oil bonds," Deora said.