New Delhi, Nov 7 (UNI) The Government today said it will release oil bonds worth Rs 30,000 crore to the oil marketing companies (OMCs) to partly compensate them for selling fuels at discounted prices, if the fuel prices remain at the current level.
''If the oil prices prevail at the current level, the estimated under-recoveries of the OMCs will be Rs 70,500 crore and we have cabinet approval for 42.7 per cent of this to be issued as oil bonds,'' Petroleum Secretary MS Srinivasan told reporters on the sidelines of the energy conference here.
State-run refiners such as Indian Oil, Bharat Petroleum and Hindustan Petroleum, which are currently losing Rs 240 crore per day on selling petrol, diesel, domestic LPG and PDS kerosene, will get about Rs 30,000 crore of oil bonds, he said.
Indian basket of crude is trading at 88.25 dollar per barrel in November and was 79.3 dollar per barrel last month.
The Government released oil bonds worth Rs 11,800 crore in the first six-month of the current fiscal.
Oil prices powered past a record 98 dollars in Asian trade today, as the dollar sank to a new low.
Crude oil prices surged to record highs last month and crossed the 90 dollars a barrel mark. Oil prices have risen by nearly 35-40 per cent since summer.
The rally in oil prices has been attributed largely to the weakness in the US dollar which has prompted a shift in investments from dollar denominated securities to commodities such as crude oil.
The Indian basket is now trading at over 85 dollars per barrel, widening the revenue loss of Indian Oil, Bharat Petroleum and Hindustan Petroleum by nearly Rs 7,000 crore.
The state-run firms are currently incurring Rs 240 crore losses per day on sale of petrol, diesel, LPG (cooking gas) and PDS kerosene.