PTI
 
New Delhi, May 11: A hike in prices of petrol, diesel and cooking gas appeared likely with Petroleum Ministry on Wednesday strongly pitching for the move to save oil companies from a massive financial loss but Left parties, crucial outside supporter of the government, remained firm naysayers.

They instead suggested cut in duties and CNG pricing policy to mitigate the surging international oil prices.

In a presentation to Left leaders including Sitaram Yechury of CPI-M and Gurudas Dasgupta of CPI, the oil ministry said prices of petrol need to raised by Rs 9.33 per litre, diesel by Rs 10.43 per litre, kerosene by Rs 17.16 per litre and LPG by Rs 114.45 per cylinder if prices are to be brought in parity with imported costs.

The Oil ministry said that without the price hike, oil companies would suffer a revenue loss of Rs 73,512 crore in 2006-07 fiscal.

The UPA Government had for the first time raised petrol price by Rs 2.50 per litre and diesel by Rs 2 a litre on June 21, 2005 and then by Rs 3 and 2 a litre on September 7, 2005. As against a crude price of 51 dollars per barrel taken at the time of last price hike, the Indian basket of crude was currently ruling at USD70.92 per barrel.

The Oil Ministry contended that oil retailing firms IOC, HPCL, BPCL and IBP stand to lose Rs 27,182 crore in revenues on unchanged kerosene and LPG price in 2006-07 and Rs 46,330 crore on petrol and diesel.

If prices and duties remained unchanged, Indian Oil Corp (IOC) may end the fiscal with a revenue loss of Rs 36,614 crore, Hindustan Petroleum Corp (HPCL) with Rs 15,250 crore, Bharat Petroleum Corp (BPCL) with Rs 16,682 crore and IBP with Rs 4967 crore under-recovery.