New Delhi: The Government today (Dec 8, 2004) told the Rajya Sabha that the price of cooking gas would need to be hiked by Rs 210.40 per cylinder and kerosene by Rs 11.05 per litre to maintain import price parity.

Public Sector oil companies have incurred Rs 7,800 crore loss due to under-recovery on these products, Petroleum Minister Mani Shankar Aiyar said making a statement to calling attention on the exorbitant rise in prices of petro products.

He said that oil PSUs have also estimated under-recoveries of an additional Rs 3,300 crore during April-November 2004 due to non-revision in the prices of petrol and diesel in line with international prices.

He said taking into account the current level of duties, taxes and Government subsidy, that the retail selling price of PDS kerosene in Delhi would need to be increased from Rs 9.01 to Rs 20.06 and domestic LPG from Rs 281.60 to Rs 492.00 based on November 2004 international prices.

Oil PSUs have been sharing the burden on kerosene and cooking gas by not passing the full increase in international prices in the domestic consumer prices of these products, Aiyar said.

Despite the steep increase in global prices, the selling price of PDS kerosene has not increased even after an announcement by the previous Government of the dismantling of the Administered Price Mechanism effective from April 1, 2004, he said.

The Retail Selling Price of domestic LPG has been increased twice by only Rs 20 a cylinder each time in mid-June and early November, he said.

Aware of the need to protect the consumer from the unprecedented hike in global oil prices, Aiyar said appropriate measures have been taken to the extent possible so as not to pass on the increase fully.

Considering high international prices and huge under-recoveries of oil PSUs, increase effected in prices on November 5, was to the full extent of the rise in import price parity in case of petrol and half the difference between the domestic RSP and the import parity price in case of diesel, he said.

When the import parity price declined on November 16, domestic prices of petrol were accordingly reduced, he added.