New Delhi: Petroleum minister Murli Deora on 13 November 2007 said he is in talks with finance minister P Chidambaram to take a decision on compensating state-run oil marketing companies in the wake of rising international crude prices.
“I am consulting my colleague in the finance ministry to have an early workable solution to the problem... we will take an appropriate decision at an appropriate time,” Deora told reporters at the Economic Editors’ Conference.
The Government has decided to give oil bonds to the tune of Rs23,457 crore during this fiscal to PSU oil marketing firms to compensate them for selling fuel below the cost price, he said.
Deora said the government is concerned over the volatility in international crude prices and as the global rates increase to $100 a barrel, under-recoveries of domestic oil firms would only rise further.
He also said the seventh round of auctioning of oil and gas blocks under the New Exploration Licencing Policy is likely to be launched by January 2008.