No decontrol of diesel; petroleum prices need a relook: Reddy

New Delhi:Oil Minister S Jaipal Reddy todayunderlined the need for having a relook at petroleum productprices, but said the government is not contemplating decontrolof diesel rates just yet.

"The prices of all petroleum products need to be lookedat again. However, we live in a real world, not only innumbers," he told reporters on the sidelines of 7th Asia GasPartnership Summit here.

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Oil firms sell diesel, domestic LPG and kerosene atgovernment-controlled rates which are way below the cost. Evenpetrol, which was deregulated in June 2010, continues to besold at around Rs 7.70 per litre less than its actual cost.

"As of now, we are not contemplating deregulation ofdiesel prices," Reddy said.

State-owned oil companies will need to raise diesel priceby Rs 14.73 a litre if the government were to free itspricing, like it was done in case of petrol in 2010.

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"There is some kind of discontinuation of deregulation inpetrol prices," he said. "But we have no intention of bringingregulation back."

Oil companies have demanded that since they have not beenable to raise petrol price in line with increase in cost, theybe compensated by the government for the Rs 4,500-crore lossthey incurred on fuel sale. At present, the governmentcompensates oil firms for losses only on diesel, domestic LPG

and kerosene.

"Oil companies have no doubt suggested some measures. Butthe Petroleum Ministry does not have independent (decisionmaking powers on it). I will take up the issue at EmpoweredGroup of Ministers at the appropriate time," Reddy said.

PTI