New Delhi: Government is likely to issue by mid-October oil bonds worth about Rs 12,000 crore to state-run oil companies to partially compensate them for selling fuel at below the cost.
“A joint exercise by petroleum and finance ministeries has been undertaken to assess the revenue loss of oil companies (on selling petrol, diesel, domestic LPG and kerosene),” Petroleum Secretary M S Srinivasan said.
Government has not allowed Indian Oil, Bharat Petroleum and Hindustan Petroleum to raise fuel prices in line with cost and instead would compensate them partially through oil bonds.
The two ministeries are likely to converge on the quantum of loss in the next 10 days and government in all probability will issue oil bonds by15 October, he said. “We are expecting Rs24,000 crore worth of oil bonds this fiscal. In the first trance (to be issued by 15 October for first half of the current fiscal), we are expecting Rs12,000 crore worth of oil bonds,” he said.
Srinivasan said the spike in international crude oil prices, which touched a record $84 a barrel, was a matter of grave concern for the country. “It is definitely a matter to worry about... we are keeping a close watch and constantly monitoring the situation.”
India imports 73% of its crude oil needs to meet the fuel requirement of the growing economy. He, however, refused to say if retail petrol and diesel prices will be raised.