India faces formidable challenges on energy front: PM
28 April 2012 12:36 PM GMT
'The challenges we face on the energy front are formidable. We need adequate supplies of energy at affordable prices. Domestic sources of crude oil and gas are inadequate to meet the growing demands of our rapidly expanding economy,' Prime Minister Manmohan Singh stated at the formal inauguration of a USD 400 billion refinery at Bhatinda today.
He added that spiralling international oil prices have put a strain on the country's import bill, and domestic prices need to be rationalised.
'With imports accounting for about 80 per cent of our crude supplies, the spiralling prices of crude in the international market have put a severe strain on our import bill,' he said. 'We also need to rationalise prices and at the same time ensure that the poor and needy are shielded from the effects of such a rationalisation.'
State-owned oil companies haven't raised diesel, domestic LPG and kerosene for almost a year despite cost of raw material rising by a quarter. Though the government had released petrol prices from its control in June 2010, PSU oil companies haven't been able to raise prices because of political pressure. In Delhi, petrol price is Rs 65.64 a litre, about Rs 9 short of its cost.
The government controls rates of diesel, domestic LPG and kerosene. Discounts on the prices of diesel and kerosene per litre stand at Rs 16.16 and Rs 32.59 respectively. A 14.2-kg domestic LPG cylinder is priced Rs 570.50 less than its actual cost.
'In order to insulate the common man from the impact of rising oil prices, the Government shoulders a sizeable portion of the burden by pricing diesel, kerosene and domestic LPG below their market prices,' Singh said.
Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum lost about Rs 138,800 crore in revenues on selling diesel, domestic LPG and kerosene below cost in 2011-12. This fiscal, the revenue loss is estimated at Rs 208,000 crore.
He added that spiralling international oil prices have put a strain on the country's import bill, and domestic prices need to be rationalised.
'With imports accounting for about 80 per cent of our crude supplies, the spiralling prices of crude in the international market have put a severe strain on our import bill,' he said. 'We also need to rationalise prices and at the same time ensure that the poor and needy are shielded from the effects of such a rationalisation.'
State-owned oil companies haven't raised diesel, domestic LPG and kerosene for almost a year despite cost of raw material rising by a quarter. Though the government had released petrol prices from its control in June 2010, PSU oil companies haven't been able to raise prices because of political pressure. In Delhi, petrol price is Rs 65.64 a litre, about Rs 9 short of its cost.
The government controls rates of diesel, domestic LPG and kerosene. Discounts on the prices of diesel and kerosene per litre stand at Rs 16.16 and Rs 32.59 respectively. A 14.2-kg domestic LPG cylinder is priced Rs 570.50 less than its actual cost.
'In order to insulate the common man from the impact of rising oil prices, the Government shoulders a sizeable portion of the burden by pricing diesel, kerosene and domestic LPG below their market prices,' Singh said.
Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum lost about Rs 138,800 crore in revenues on selling diesel, domestic LPG and kerosene below cost in 2011-12. This fiscal, the revenue loss is estimated at Rs 208,000 crore.
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