Deora asks FM for higher subsidies for fuel

New Delhi, Mar 6 (UNI) Petroleum Minister Murli Deora today urged the Finance Ministry to provide higher subsidies for fuel and exempt exploration and drilling activities from service tax.

After a more than an hour meeting with Finance Minister P Chidambaram this evening, Mr Deora said the failing financial health of oil PSUs has been brought to the attention of the Finance Minister and subsidies sought for them. ђThe Budget should provide subsidies for fuel also,Ғ Mr Deora said after the meeting.

The Petroleum Minister also asked Mr Chidambaram to compensate oil companies for selling petrol, diesel, LPG and kerosene below their production cost. He also asked for a transparent system of subsidies for fuel which is used by the common man.

He said oil and gas pipelines must be granted infrastructure status while exempting exploration and drilling from the service tax. ONGC chairman Subir Raha, who also attended the meeting, said cess on petroleum products were also discussed at the meeting.

Meanwhile, Mr Chidambaram has agreed to issue oil bonds worth Rs 11,500 crore to oil PSUs by March 15.

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