Govt issues oil bonds worth Rs 9,297 cr to OMCs

New Delhi, Mar 28 (UNI) The Government today issued oil bonds worth Rs 9,297 crores to oil marketing companies (OMCs) to compensate for selling fuel at a subsidised rate.

The bonds will be issued to Indian Oil, Bharat Petroleum, Hindustan Petroleum and ONGC, said a statement.

The bonds would not be eligible for meeting statutory liquidity reserve requirements of banks.

The Government has not allowed public sector oil retailers to raise prices of petrol, diesel, domestic LPG and kerosene for PDS sale despite the rise in crude prices and has decided to compensate them for 42.7 per cent of the revenue loss through issue of oil bonds.

These public sector companies are feeling the heat as crude prices keep rising.

The Government brought in a marginal increase in petrol and diesel prices by Rs 2 per litre and Re 1 a litre respectively with effect from February 15, 2008.

UNI RT PBB AS1906