Govt asks OMCs to submit detailed analysis of Chaturvedi Report

New Delhi, Aug 19 (UNI) Petroleum Secretary R S Pandey today gave a categorical assurance that the government, before going to the Cabinet, will take the views of oil marketing companies (OMCs) on board relating to the Chaturvedi Committee Report recommendation on export parity formula.

Mr Pandey told reporters here at the CEOs Conclave of Oil and Gas PSUs chaired by Petroleum Minister Murli Deora that the oil firms have been asked for a detailed analysis on the Chaturvedi Committee Report various recommendation and to submit these shortly to the government.

The PSUs in the oil sector are uncomfortable about switching over from the trade parity formula to the export parity formula, he said.

Indian Oil Corp Chairman Sarthak Behuria striking a discordent note with the Chaturvedi Committee Report recommendation said the switch over the contradiction in terms as India imports 75 per cent of its oil needs and using the export parity formula would lead to losses.

He said adopting export parity formula would reduce refining margins, putting standalone refineries to huge losses.

Besides, investment in the refining sector would be reluctant to come in.

The high-powered B K Chaturvedi Committee was set up at the behest of Prime Minister Manmohan Singh with the mandate to examine the financial viability of the public sector OMCs as well as the subsidy in pricing issues relating to the petroleum sector.

UNI SBA SR BST1813