The Hindu Business Line : ‘Ministry monitoring petro prices’

New Delhi, Oct. 10 The Petroleum Minister, Mr Murli Deora, while stating that his Ministry is closely monitoring prices of petrol, diesel, kerosene, and liquefied petroleum gas (LPG) on Wednesday reiterated the Government’s commitment to protect the interest of the common man from the impact of volatility in crude prices. This is being done by ensuring equitable burden sharing amongst all stakeholders including Government and oil companies, he said.

Addressing the Parliamentary Consultative Committee attached to his Ministry, Mr Deora said that there has been no revision in the prices of petroleum products in spite of consistent rise in international oil prices, whereas following softening of prices post August 2006, petrol and diesel prices were reduced in November 2006 and again in February 2007.

crude basket

The Indian crude basket touched an all-time high recently. The Indian basket on Tuesday stood at $74.68 a barrel. Mr Deora informed the committee that the under-recoveries of public sector oil marketing companies (OMCs) is expected to be about Rs 52,500 crore during this fiscal. He pointed out that the Government along with oil PSUs shared most of the burden of rising oil prices during 2006-07.

The Government issued oil bonds worth Rs 24,121 crore to OMCs to partly compensate them for under-recoveries on these products while upstream companies shared to the tune of Rs 20,507 crore.

As regards LPG and kerosene supplies, the Minister has directed the oil marketing companies – IOC, HPCL and BPCL — to ensure adequate availability of these two products all over the country especially in view of the ensuring festivals.

Vigilance efforts

Simultaneously, the Minister has directed his Ministry to increase vigilance efforts to curb hoarding and diversion of these vital household fuels, specifically during the festival season.