The Oil Min says that the reports of government mulling hike in petrol and diesel prices are not true. and says that the reports of fuel hike are inaccurate.

Earlier there were news reports that the government is mulling ways such as increasing petrol and diesel prices for tackling the spurt in international crude oil prices that have resulted in oil companies losing Rs 170 crore a day.

A Rs 2 hike in petrol and a Re 1 increase in diesel prices is being considered as Indian basket of crude oil crossed $ 69 a barrel mark.

Public sector oil firms are losing over Rs 5.3 a litre on petrol and Rs 4.40 on diesel as Indian basket of crude oil has risen 12% since February 15, when petrol and diesel prices were slashed by Rs 2 and Re 1 a litre respectively.

Oil companies are also losing 14.67 a litre on kerosene and Rs 167 on per cylinder of domestic LPG.

Total under-realisation on petrol, diesel, LPG and kerosene for the full fiscal is estimated at Rs 50,700 crore.

As per the equitable burden-sharing formula, if and when the ministry gets the Cabinet nod for raising prices, the Rs 5 a litre burden will be borne by the consumers; the government which will issue bonds or tweak taxes; and the oil companies such as ONGC which will contribute from their income from crude and gas sales to cover the losses.