New Delhi, May 22
As global crude prices shot to a record 135 dollar a barrel, Prime Minister Manmohan Singh today said the government would not let them suffer.

"We will not allow oil companies to suffer," he told reporters at the fourth anniversary celebrations of the UPA government at his residence.

Petroleum minister Murli Deora indicated that the price rise could not be ruled out. When the oil minister was asked about the likely decision, he indicated that the Cabinet might meet and decide the same on Friday.

The petroleum minister is likely to tell Manmohan Singh that fuel shortages are worse than price hikes. However, the oil minister did not confirm if the Cabinet was meeting.

The raising of fuel prices is important because oil companies are bleeding due to mounting losses as international crude prices continue to rise every single day and the retail prices are kept artificially low.

Going by the crude price rise and artificially low retail selling prices, calculations show that the three oil firms are currently losing Rs 450 crore in revenues on fuel sales every day. Petrol is being sold at a loss of Rs 16.34 a litre, diesel at Rs 23.49 per litre, LPG at Rs 305.90 per cylinder and kerosene at a loss of Rs 28.72 per litre.