The petroleum ministry has planned to take to the Cabinet this week a proposal to either marginally raise petrol and diesel prices or cut duties to offset the impact of raising international oil prices but the proposal is not being pursued this week.
"We are trying to see if we can find a solution next week," Petroleum Minister Murli Deora told reporters in New Delhi.
Deora, however, did not say why he was going back on his last week's statement of taking a decision this week.
Sources said Prime Minister Manmohan Singh as well as UPA Chairperson Sonia Gandhi were against the idea of taking a "harsh" decision just before Diwali.
Besides, the Congress party had also opposed any move to raise fuel prices even marginally.
OIL-PRICE 2 LST
Deora, they said, had a meeting with Singh yesterday
evening where it was made clear to him that no increase in
fuel prices should be done before Diwali, which is on November
9.
Sources said there is also a thinking in a certain section in the government that a decision must be deferred until completion of elections in Gujarat and Himachal Pradesh.
"Government is very much alive to the problems faced by our PSUs. We are trying our best so that we find a solution soon," Deora said.
Fuel retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum are currently losing over Rs 240 crore per day on sale of petrol, diesel, domestic LPG and PDS kerosene.
They make a loss of Rs 4.94 on sale of every litre of petrol, Rs 6.50 per litre on diesel, Rs 16.42 a litre on kerosene and Rs 207 per cylinder on LPG.
Deora said the options before the government include raising fuel prices, a cut in excise duty for petrol and diesel or increasing the quantum of bonds.
