Private Oil cos free to fix petroleum prices: Patel

New Delhi, May 23 (UNI) The Government today said that while PSU oil marketing companies (OMCs) are fixing the prices of sensitive petroleum products in consultation with it, private oil companies were free to fix the prices of their products.

Replying to a question on the high cost of production of public sector undertakings (PSUs), Minister of State for Petroleum and Natural Gas Dinsha Patel said the refining cost of crude oil depended upon the factors of configuration, technology capacity, age, location and logistics.

To reduce the refining cost, PSU refineries had taken steps to yield maximisation of value added products (LPG, MS, ATF) and put thrust on energy conservation and reduction in hydrocarbon losses.

Mr Patel said in a written reply that the other measures taken included downsizing manpower costs, adhering to preventive maintenance schedule, keeping control on overheads and expanding capacity to achieve economies of scale.

To another question, the Minister said three new refineries were in the process of being set up -- Indian Oil Corp Ltd at Paradip (Orissa), Hindustan Petroleum Corp Ltd at Bhatinda (Punjab) and Bharat Petroleum Corp Ltd at Bina (Madhya Pradesh).

Besides, Oil and Natural Gas Corp. Ltd, through its subsidiary Mangalore Refinery and Petrochemicals Ltd was considering setting up an export-oriented refinery at Kakinada (Andhra Pradesh) and exploring the feasibility of setting up a well-head refinery in Barmer, Rajasthan.

Mr Patel said that 55 blocks comprising 24 deep water, six shallow water and 25 onshore blocks have been offered to both domestic and foreign companies for bidding under the sixth round of New Exploration Licensing Policy (NELP-VI).

The bid closing date for NELP-VI is September 15, 2006.

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