The Hindu : National : Deora meets PM, Sonia as crude prices soar

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Friday, Nov 02, 2007
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Deora meets PM, Sonia as crude prices soar

Sujay Mehdudia

NEW DELHI: In the background of international crude prices touching the $95 mark, Petroleum Minister Murli Deora on Thursday held consultations with Prime Minister Manmohan Singh, United Progressive Alliance chairperson Sonia Gandhi and Finance Minister P. Chidambaram to find ways to deal with the situation.

“It is an unprecedented situation. The sudden rise in crude prices has come as a shock to the public sector oil marketing companies (OMCs). We are trying to find a solution to deal with this emerging situation without putting unnecessary burden on the common man, as directed by the Congress president,” Mr. Deora said after the meeting with Mr. Chidambaram.

He discussed with the Prime Minister the OMCs mounting losses that are expected to rise further. He also discussed with Dr. Singh the issue of restructuring the Excise duties to lessen the burden on the OMCs.

Senior officials in the Ministry said if oil prices did not soften, the losses could touch Rs. 70,000 crore.

On October 11, the Cabinet decided to give Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum oil bonds to the extent of 42.7 per cent of their projected revenue loss of Rs. 54,935 crore on selling petrol, diesel, domestic LPG and PDS kerosene. Besides giving oil bonds worth Rs. 23,457.24 crore, 35 per cent of Rs 19,227.25 crore in the total under-realisations in revenue is to be borne by ONGC, GAIL and Oil India Limited.

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