State-owned oil companies have threatened to stop jet fuel supplies to Air India after the cash-strapped national carrier repeatedly defaulted on payment of fuel bills.Air India was put on cash-and-carry from December, but the airline has not been able to pay for even its daily fuel purchases."Oil companies already incur huge losses on selling diesel, domestic LPG and kerosene way below their production cost and to expect them to sell ATF at subsidised rates is not acceptable," an official said.At a meeting called by Cabinet Secretary K M Chandrasekhar in March to resolve the payment impasse, Air India sought discounts similar to the ones given to private airlines.
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As per news reported in cnn ibn this evening there will be hike in petrol price by Rs.5 from midnight today.

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Petrol prices are likely to go up by Rs 3 per litre later this week, but a hike in the rates of diesel and domestic LPG cylinder will have to wait as the meeting of the ministerial panel has been deferred to next week.




“The empowered group of ministers (eGoM), headed by finance minister Pranab Mukherjee, was to meet tomorrow evening. It has been put off,” oil minister S. Jaipal Reddy said.
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http://www.telegraphindia.com/1110511/jsp/business/story_13967394.jsp

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EGoM meeting on fuel price hike postponed by a week



Sandeep Joshi


NEW DELHI: With a crucial meeting of the Empowered Group of Ministers (EGoM) on fuel price hike postponed by a week, a decision on increasing the prices of diesel and domestic LPG prices will be taken only by May 17 or 18. However, petrol prices, which were deregulated by the government, can go up in next few days. The EGoM is headed by Finance Minister Pranab Mukherjee



“The EGoM was to meet on Wednesday evening [May 11]…it has been put off. It has been postponed to accommodate some Ministers...It could be anytime on [May] 17 or 18,” Petroleum and Natural Gas Minister S. Jaipal Reddy told journalists here on Tuesday. The EGoM was to meet to consider hiking the diesel price by Rs.3-4 a litre and domestic LPG rates by Rs.20-25 a cylinder.



However, the government-owned oil marketing companies may raise petrol prices by up to Rs.3, which has been not revised since January, in the next two-three days.



Though the government had freed petrol prices in June 2010, the oil sector PSUs continue to be guided by informal advice from the government.



The PSUs are now losing about Rs.9 a litre on petrol, Rs.16.17 a litre on diesel, Rs.29.69 a litre on kerosene and Rs.329.73 a 14.2-kg domestic LPG cylinder.



Mr. Reddy said the day EGoM met, a Group of Ministers (GoM) that is vetting London-listed Vedanta Resources' $9.6 billion acquisition of Cairn India, may also meet.



“I think when the next date is fixed, on that day itself we will deal with both questions — the question of under-recoveries of oil companies and the question of government approval to Cairn-Vedanta deal,” he said.


Read more .... http://www.hindu.com/2011/05/11/stories/2011051155491700.htm

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