Karnataka   

Proposal on FMDP for petro products under study

MADDUR (MANDYA DISTRICT): The Union Government is examining a proposal for a Free-Market Determined Price (FMDP) for petroleum products like petrol, diesel, kerosene and domestic LPG by the end of January 2008, according to Union Petroleum Secretary M.S. Srinivasan.

He was speaking to pressperson after the opening of the new retail outlet of Mangalore Refineries and Petrochemicals Limited (MRPL) here on Saturday.

The Government had constituted a committee comprising Union Ministers to study the issue relating to FMDP.

Mr. Srinivasan said the committee was meeting on January 17, and in all probability it would submit its recommendations to the Cabinet for a final decision on the matter.

Asked about the status of the seventh round of New Exploration Licensing Policy (NELP-VII), Mr. Srinivasan said that global players would also participate in the bidding process, which made competition tough.

Mr. Srinivasan pointed out that investments in prospecting and exploration under NELP-VII round would be in the range of $ 5 billion to $ 5.5 billion.

Quoting figures projected by energy economists on global crude prices Mr. Srinivasan stated that the prices were likely to go up to $ 150 per barrel by June 2008. But during the next two years there were chances that crude prices might level off at $ 80 to $ 85 per barrel.

He said the Union Government had earmarked Rs. 62,000 crore for investments in oil and gas in the 11th Plan period (2007-12).

He said the country’s export of refined petroleum products was projected to go up to 40 million tonnes, bringing forex of $ 25 billion in 2007-08.

In 2006-07, India exported 32 million tonnes, earning forex of $ 18 billion, Mr. Srinivasan said.

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