The
Minister of State for Petroleum & Natural Gas Shri Jitin Prasada informed
the Rajya Sabha in a written reply today that during the first half of 2010-11,
i.e., April-September, 2010 the OMCs have incurred under-recovery of Rs. 31,
367 crore. With the decontrol of petrol
price and the revision in retail selling prices of diesel, PDS kerosene and
domestic LPG with effect from 26th June, 2010, the under-recoveries of the public sector Oil
Marketing Companies (OMCs) during 2010-11 at an average annual crude oil price
of $ 75 per barrel, are projected to be approximately Rs. 53,000 crore.
He
also informed that the under-recoveries of the OMCs have been compensated
during April-September, 2010 in the following manner:
|
(Rs. crore)
|
|
April-September 2010 (Provisional)
|
|
Under-recovery on
sensitive petroleum products 31,367
|
|
Burden sharing
through:
|
|
- Cash assistance
provided by the Government 13,000
|
|
- Upstream assistance 10,456
|
|
- Balance under recovery
borne by OMCs 7,911
|
The
Minister stated that the Government has been following a burden sharing
mechanism, to ensure that the burden of under-recoveries is shared by all the
stakeholders; namely the Government, the public sector oil companies and the
consumers in the following manner:
(i)
Government
through issuance of oil bonds/cash assistance.
(ii)
Upstream
oil companies namely, Oil and Natural Gas Corporation (ONGC), Oil India Limited
(OIL) and GAIL (India) Limited (GAIL) by way of price discount on Crude oil
and products
(iii)
Oil
Marketing Companies (OMCs) by absorbing a part of the under-recoveries and
(iv)
Price
increases for the consumers, from time to time.
RCJ/DT