The Hindu Business Line : Oil companies asked to undertake kerosene delivery

THE Petroleum Minister, Mr Mani Shankar Aiyer, has asked the oil marketing companies to undertake the responsibility of delivering kerosene to the end-consumer, according to oil industry sources.

At a meeting with the heads of the public sector oil marketing companies as well as that of Oil and Natural Gas Corporation here on Saturday, Mr Aiyer assured the oil companies that the financial requirement to discharge this obligation would be met by the Government.

This marks a major shift in the existing delivery mechanism for kerosene through the public distribution system (PDS). Further, it would possibly mean entering into the jurisdiction of the States that direct distribution of kerosene subsidy. "We are confident that the States will cooperate with us in this matter," a senior oil industry source said.

Currently, a good part of the kerosene is distributed through a system where the transportation of kerosene from the oil companies' end to the PDS depot (run by the State Government) is undertaken by the State Government. It is here that diversion of kerosene (for the purpose of adulteration with diesel) is suspected.