EGoM to examine rationalization of diesel price, says Petroleum Secretary

New Delhi, Dec.30 (ANI): Union Petroleum Secretary S. Sudarshan on Thursday said the decision with regard to the consideration of revision, rationalization of price of diesel will be examined by the Empowered Group of Ministers (EGoM).

"This decision, consideration of revision, rationalization of price of diesel will be examined by the EGoMs. They would come to it by proper view. At this juncture we are addressing the question of the under recoveries of the Oil Marketing Companies (OMCs) and everybody can be rest assured that will be properly addressed," said Sudarshan.

Sudarshan further said normally the final figure of burden sharing is decided in the last months of the financial year or sometimes in the early party of the next year.

"The final accounts are not ready. We did not know how oil prices are going to be behaving in the course of the next few months. As I have said and I would like to reiterate that normally the final figure of burden sharing is decided in the last months of the financial year or sometimes in the early party of the next year," said Sudarshan.

"We have an absolute assurance from the ministry of finance that this will not be limited to one-third. So we would have a workable mechanism by the end of the year," he added.

He said the upstream companies would share only less than 33 percent.

"I am happy to say that there is absolutely clear understanding in the Ministry of Petroleum and Natural Gas and we stand committed to it the upstream companies will not be sharing more than 33 percent, which is what they were, in the recent past over the last three years upstream is always shared about 33 percent," said Sudarshan.

"With that understanding the Follow-On Public (FPO) offer of Oil and Natural Gas Corporation (ONGC) limited will go full steam ahead and we are confident that the exercise of ONGC diversement will be completed before the end of March 2011," he added.

State-run oil retailers raised petrol prices on December 15 midnight by close to three rupees, the most in six months, while the government also plans to increase diesel prices.

The revised petrol prices in New Delhi are Rs 55.87 per litre, in Mumbai Rs 60.27 and Rs 59.77 in Kolkata. (ANI)