<p>"The petroleum and natural gas ministry is working out a formula addressing the under-recovery of losses faced by government-owned oil marketing companies," Deora told reporters here. <br /><br />Deora was here to attend the parliamentary consultative committee of his ministry.<br />He said the government will take a balanced view taking into account the interests of consumers and vulnerable sections of the society as well as the health of the oil companies.<br />Ministry officials, however, hinted at a hike in petrol and diesel prices as the price of crude oil in the international markets is now hardening.<br /><br />"The international price of crude oil is around $85 per barrel now. At this price, the oil companies will face an under-recovery of over Rs.100,000 crore," said Petroleum Secretary S. Sundareshan.<br /><br />Also, the debt-equity ratios of oil marketing companies is turning adverse owing to their borrowing, which stands at Rs.88,300 crore at the end of last fiscal.<br /><br />Deora cited the increasing crude prices since 2003-04 when it ranged at $28 per barrel to $142 per barrel in 2008.<br /><br />He said the government decided not to pass on the full price hike to the people to protect them from inflationary pressures.<br /><br />The oil marketing companies have under-recoveries of Rs.46,051 crore in the last fiscal and the government has provided them with an assistance of Rs.26,000 crore, while the upstream oil companies have contributed around Rs.14,430 crore.<br /><br />Sundareshan said the balance was absorbed by the oil marketing companies.<br /><br /></p>
<p>"The petroleum and natural gas ministry is working out a formula addressing the under-recovery of losses faced by government-owned oil marketing companies," Deora told reporters here. <br /><br />Deora was here to attend the parliamentary consultative committee of his ministry.<br />He said the government will take a balanced view taking into account the interests of consumers and vulnerable sections of the society as well as the health of the oil companies.<br />Ministry officials, however, hinted at a hike in petrol and diesel prices as the price of crude oil in the international markets is now hardening.<br /><br />"The international price of crude oil is around $85 per barrel now. At this price, the oil companies will face an under-recovery of over Rs.100,000 crore," said Petroleum Secretary S. Sundareshan.<br /><br />Also, the debt-equity ratios of oil marketing companies is turning adverse owing to their borrowing, which stands at Rs.88,300 crore at the end of last fiscal.<br /><br />Deora cited the increasing crude prices since 2003-04 when it ranged at $28 per barrel to $142 per barrel in 2008.<br /><br />He said the government decided not to pass on the full price hike to the people to protect them from inflationary pressures.<br /><br />The oil marketing companies have under-recoveries of Rs.46,051 crore in the last fiscal and the government has provided them with an assistance of Rs.26,000 crore, while the upstream oil companies have contributed around Rs.14,430 crore.<br /><br />Sundareshan said the balance was absorbed by the oil marketing companies.<br /><br /></p>
