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Manmohan may call meet on oil bonds

NEW DELHI: With the under-recoveries on motor fuel “threatening to go out of control” and international crude prices showing no sign of receding, Prime Minister Manmohan Singh is likely to convene a meeting of the Petroleum and Natural Gas and Finance Ministries to sort out the “dispute” pertaining to issuance of enhanced oil bonds to bail out the oil marketing companies (OMCs) from incurring heavy losses that threaten to derail their expansion and investment plans.

Highly-placed sources said this assurance to deal with the “oil crisis” was given to Petroleum and Natural Gas Minister Murli Deora when he met Dr. Singh on Saturday and submitted a memorandum that sought “immediate relief” to the OMCs which are facing massive losses due to spurt in international crude prices.

Crude oil prices have shot up to $126 a barrel and the Indian basket has touched almost $118.

The sources said Mr. Deora impressed upon the Prime Minister to take corrective action to put and end to the “bleeding” of the OMCs, failing which they would face bankruptcy.

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