'No petrol price hike; OMCs to get oil bonds'
New
Delhi,
Oct
11:
In
a
move
aimed
at
avoiding
a
hike
in
the
retail
prices
of
petrol
and
diesel,
the
Cabinet
today
decided
to
issue
oil
bonds
worth
over
Rs
23,000
crore
to
Oil
Marketing
Companies
(OMCs)
to
cover
42.7
per
cent
of
the
under-recoveries
arising
from
the
rising
crude
prices
in
the
international
market.
The upstream companies have been asked to share about one-third of the total under-recoveries of the OMCs, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.
Further, the government would extend the existing subsidy for three more years from April 1, 2007, he said.
The decisions would enable continuation of subsidies on PDS kerosene and domestic LPG and sharing the burden of OMCs' under- recoveries on account of sale of sensitive petroleum products.
UNI