The Hindu : Oil PSEs' retail scheme for kerosene

Online edition of India's National Newspaper
Wednesday, Dec 03, 2003

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Business

Oil PSEs' retail scheme for kerosene

By Our Special Correspondent

NEW DELHI, DEC. 2. Public sector oil companies will now meet the needs of bulk kerosene users who have been affected by the ban on the ten-year old parallel import and marketing system. The companies will form a separate retail chain separate from the supply to the public distribution system (PDS) that provides subsidised kerosene for domestic cooking purposes.

Disclosing this here today, the Union Petroleum Secretary, B. K. Chaturvedi, said the new retail chain would provide three lakh tonnes of kerosene to industrial users, requiring bulk supplies of this petroleum product. He said kerosene imports by private firms had to be banned to end the growing adulteration of diesel.

Addressing the second India Petro conference organised by the Associated Chambers of Commerce and Industry (Assocham), he said kerosene imports would now be allowed only through designated state firms — Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation and IBP. He said the curb on free imports would not harm industry's interests as the country's refineries were producing sufficient quantities of kerosene to meet the requirements for domestic and industrial use. On the parallel marketing scheme, he said imports of superior kerosene oil (SKO) were being sold to trucks for transportation purposes in gross violation of the Government policy.

The diversion of kerosene for transport particularly in Gujarat and some southern States, led to a fall in diesel sales by 3.2 per cent to 20.66 million tonnes during April to October this year. This was despite a good monsoon leading to higher agriculture demand and spurt in automobile sales.

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