Selling fuels below the market price

Petroleum Ministry seeks Rs 5,000 cr more for oil cos



New Delhi, Oct 29 : : The Petroleum Ministry has sought from the Finance Ministry an additional Rs 5,000 crore for compensating the public sector oil marketing companies (OMCs) for selling fuels below the market price during April-September 2010. The Petroleum Minister, Mr Murli Deora, met the Finance Minister, Mr Pranab Mukherjee, here on Friday for this purpose. According to the Petroleum Ministry, the total under-recovery for April-September 2010, is estimated to be Rs 31,367 crore.



The Petroleum Ministry wants the Finance Ministry to shoulder at least 50 per cent of the total under-recovery. It had sought Rs 15,000 crore from the Finance Ministry to compensate the three public sector oil companies for the first half of the current fiscal. The Finance Ministry has paid only Rs 10,000 crore towards this. Oil and Natural Gas Corporation, GAIL (India), and Oil India will shoulder a burden of Rs 10,456 crore of the Rs 31,367 crore.

… From Our Bureau…of HINDU Business Line..newspaper.