Public CompanyOMC under-recoveries at Rs 45,478 cr, says Deora
Public sector oil marketing companies(OMCs) are projected to incur under-recoveries of Rs 45,478 crore on retail sale of petrol, diesel, domestic cooking gas and kerosene during 2009-10, based on the refinery gate prices in the first fortnight of December.
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This is lower compared to the under-recoveries of Rs 85,000 crore incurred by the OMCs in 2008-09, which was due to the higher crude oil price of over $80 a barrel. At present, the price of the crude basket is $71.43 (Rs 3,337) a barrel (157.5 litres to a barrel).
The public sector OMCs incur under-recoveries of Rs 3.10/litre of petrol, Rs 2.55/litre of diesel, Rs 17.30/litre of PDS (ration shop) kerosene and Rs 241 on each 14.2 kg cylinder of domestic LPG at Delhi. Union petroleum minister Murli Deora informed the parliamentary consultative committee attached to his ministry on Friday that, “The OMCs are the backbone of the country’s energy security. Hence, their health is a cause of concern for us.”
Deora also elaborated on various initiatives being undertaken for increasing domestic oil and gas production, as well as measures for the convenience of petroleum-product customers.
He said crude oil production from the block in Rajasthan inaugurated by the Prime Minister in August is likely to peak at 175,000 barrels a day by 2011, on completion of the transport pipeline. Gas production from the Krishna-Godavari basin D-6 field is estimated to increase to 80 million standard cubic metres per day (mscmd) by March, against the present production of 42 mscmd.
Deora said SMS booking of LPG, more Kisan Seva Kendras in rural areas, automation of retail outlets and use of technology to improve the supply and quality of petro products are some of the important initiatives being undertaken by the OMCs. A major initiative for extending LPG supplies over the next five years, specially in rural areas and regions with low coverage, has been taken with the launch of the Rajiv Gandhi Gramin LPG Vitrak Yojana.