Govt to decide on relief package for state-run oil cos in 3-4 days

[K.Karthik Raja]

Govt to decide on relief package for state-run oil cos in 3-4 days
Friday, May 23

NEW DELHI - The government will work out a package for cushioning
state-run oil marketing companies against the spike in crude prices in
3-4
days, Petroleum Secretary M.S. Srinivasan said today.
The possible measures include restructuring of customs and excise
duties
on crude and petroleum products, revision in auto fuel prices, issue
of more
bonds to oil companies, and subsidy to be borne by state-run upstream
oil
companies.
"The options are getting narrower and narrower...an upward revision
(in
auto fuel prices) is inevitable," Srinivasan told reporters after a
meeting
with heads of state-run oil companies and Petroleum and Natural Gas
Minister
Murli Deora.
India's three state-owned oil marketing companies--Hindustan
Petroleum
Corp. Ltd., Bharat Petroleum Corp. Ltd. and Indian Oil Corp.-- are
together
losing around 5.5 bln rupees daily on sale of various petroleum
products at
subsidised prices.
The cumulative revenue losses of the three companies are estimated
to
rise to about 2 trln rupees in the current financial year to March.
The
losses amounted to 773 bln rupees in the previous financial year.
In February, these companies had raised prices of petrol by 2
rupees per
L and that of diesel by 1 rupee per L.Thursday, crude oil prices
breached
the $135 per barrel mark on the New York Mercantile Exchange.