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Our Bureau

New Delhi, Feb. 10 To compensate the public sector oil marketing companies (OMCs) for the revenue loss incurred on fuel sales in the fourth quarter of the current fiscal, the Petroleum Ministry has sought oil bonds of about Rs 13,000 crore.

The Government has already sanctioned bonds worth Rs 60,967 crore for the first three quarters of the current fiscal, of which bonds worth Rs 50,980 crore has been issued. “The remaining amount (for the first three quarters) is expected to be issued shortly. We have also written to the Finance Ministry indicating the estimated amount for the fourth quarter,” official sources said.

The OMCs – Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation – incur revenue loss on sale of petroleum products below the market price. For 2008-09 fiscal, the three OMCs together are estimated to suffer a revenue loss of about Rs 1, 05,860 crore.

While upstream companies ONGC and Oil India along with GAIL (India) have shouldered Rs 32,000 crore of this loss by way of discounts on crude oil and products sold to the OMCs, the remaining burden is shared by the Government and refineries.

More Stories on : Corporate Bonds | Petroleum | GAIL (India) Ltd | Oil & Natural Gas Corporation Ltd

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