| The government will look at a mix of measures that include increasing petrol and diesel prices, tinkering with the duty structure, using the profits of upstream companies like ONGC to subsidise the under-recoveries of public sector oil marketing majors like Indian Oil Corporation. |
| While kerosene may be spared, diesel and petrol prices might go up by Rs 2.5-Rs 3 per litre. Petroleum minister Murli Deora has been against any increase in the prices of the domestic cooking gas. |
| Although the petroleum ministry's demand for a reduction in duties has been opposed by the finance ministry, Left parties have strongly supported it. |
| With duties being ad-valorem, the proceeds from it would be much more than what was projected at the beginning of the year, the ministry has said. |
| The finance ministry had made projections on the basis of the international crude oil price of $60 per barrel while is at around $70 a barrel at present. It is also likely that the government may look at issuing bonds to bridge a part of the gap or give soft loans. |
| However, it is unlikely that the Oil Industry and Development Board (OIDB) cess will be used immediately for meeting the subsidy demand, as it will require a change in the OIDB Act. |
| The petroleum ministry has projected that the public sector companies will suffer from under-recovery to the tune of Rs 73,512 crore in 2006-07 if the current scenario continued. |
| This is almost 90 per cent more than the under-recovery of Rs 39,000 crore incurred by the oil marketing companies last year. |
| While the loss because of selling petrol below cost was Rs 9.33 a litre, it was Rs 10.43 a litre for diesel, Rs 17.16 a litre for kerosene and Rs 114.45 for domestic cooking gas. |
| When fuel prices were last revised in September 2005 international crude oil prices were reigning at $60 a barrel, but the prices of products were benchmarked at $51 a barrel. |
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