Oil PSUs send SoS to Govt: Share Rs 1,000-cr burden

Sources say that though oil companies are now looking at a possible discount from ONGC and GAIL, they might ask for a price hike if global prices continue to shoot up. These options might reach the Centre soon, these sources added. Taking into account the rise in price over the past fortnight, calculations indicate that prices of petrol and diesel may go up by a minimum of Rs 1 per litre. The other option would be to take into account the rise over the past three fortnights and make up for the hit which has already been taken by the marketing PSUs. In that case the price of petrol and diesel may be hiked by Rs 3.50 to Rs 4 per litre. Given the impeding elections, even the first option8212;of a Rs 1 hike8212;might be impossible for the Centre. Since the under recoveries have shot up by around 13 per cent in the last two months, the oil marketing PSUs would have to look at both the options of more discounts from the upstream companies and hike in petro product prices, sources added.