NEW DELHI (Commodity Online): India is likely to grant the permission to fix fuel prices to state run oil companies after getting a report from an expert committee regarding the deregulation of fuel prices this week, said country’s Petroleum Minister Murli Deora.

The Minister said that the government would do best to check fuel prices rise but the current scenario would not allow the government to bear the revenue losses on selling petrol, diesel, LPG and kerosene at lower rates.



Earlier in July 2009, the Cabinet decided that the government would meet all of the under-recovery revenue loss on domestic LPG and kerosene either through bonds or in cash and the same on petrol and diesel was to be met by upstream companies like ONGC, he added.

While Oil and Natural Gas Corp, Oil India and GAIL borne the entire Rs 8,364 crore under-recovery on petrol and diesel in first three quarters of current fiscal, the government has agreed to give only Rs 12,000 crore in cash against the Rs 20,989 crore revenue loss on cooking fuel in April-December.

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