NEW DELHI - India's state-run oil firms have urged the government to allow them to sell diesel to bulk users at a price 64 percent above the pump rate, The Economic Times daily reported on Tuesday, citing unnamed official sources.
Diesel currently retails at 34.80 rupees ($0.80) a litre for all customers in Delhi, but oil firms say the price, set by the government, is way below the market price of the fuel. They want a new rate of 57 rupees for bulk purchasers, the paper said.
Rising demand for diesel from power producers and others has prompted oil firms to seek a higher price for the fuel, which is also used in large volumes to power India's railways, the paper said.
Oil companies want to restrict subsidised sales of diesel to the agriculture and transport sectors, the newspaper said.
Domestic diesel sales have risen sharply despite the government's move to raise fuel prices by about 10 percent in early June. Indian state run oil retailers have to sell fuels at heavily subsidised rates to protect the poor and help fight inflation.
Sales of the fuel rose 18 percent during April-July compared to a year ago, the chairman of India's biggest oil refiner and retailer, Indian Oil Corp (IOC.BO: Quote, Profile, Research, Stock Buzz), said last week.
State-run IOC, Bharat Petroleum Corp Ltd (BPCL.BO: Quote, Profile, Research, Stock Buzz) and Hindustan Petroleum Corp Ltd (HPCL.BO: Quote, Profile, Research, Stock Buzz) lose 16.22 rupees per litre on diesel sales, company officials say.
The government, struggling to contain inflation that has soared to a 13-year high of 12.6 percent, is reluctant to raise fuel prices ahead of general elections scheduled for next year. ($1=43.68 rupees)
Diesel currently retails at 34.80 rupees ($0.80) a litre for all customers in Delhi, but oil firms say the price, set by the government, is way below the market price of the fuel. They want a new rate of 57 rupees for bulk purchasers, the paper said.
Rising demand for diesel from power producers and others has prompted oil firms to seek a higher price for the fuel, which is also used in large volumes to power India's railways, the paper said.
Oil companies want to restrict subsidised sales of diesel to the agriculture and transport sectors, the newspaper said.
Domestic diesel sales have risen sharply despite the government's move to raise fuel prices by about 10 percent in early June. Indian state run oil retailers have to sell fuels at heavily subsidised rates to protect the poor and help fight inflation.
Sales of the fuel rose 18 percent during April-July compared to a year ago, the chairman of India's biggest oil refiner and retailer, Indian Oil Corp (IOC.BO: Quote, Profile, Research, Stock Buzz), said last week.
State-run IOC, Bharat Petroleum Corp Ltd (BPCL.BO: Quote, Profile, Research, Stock Buzz) and Hindustan Petroleum Corp Ltd (HPCL.BO: Quote, Profile, Research, Stock Buzz) lose 16.22 rupees per litre on diesel sales, company officials say.
The government, struggling to contain inflation that has soared to a 13-year high of 12.6 percent, is reluctant to raise fuel prices ahead of general elections scheduled for next year. ($1=43.68 rupees)
