News Release Details
Kerosene in one litre pack mooted
New Delhi 29-Aug-2007
In an effort at curbing the diversion of subsidised kerosene oil to the black market, the Petroleum and Natural Gas Ministry has submitted a proposal to the Union Finance Ministry for the sale of the product in the open market in a one-litre pack. Petroleum and Natural Gas Minister Murli Deora unveiled the proposal on Tuesday during a meeting with Union Finance Minister P. Chidambaram. Mr. Deora met the Finance Minister to discuss the issue of oil bonds and underwriting the losses of the Oil Marketing Companies on revenue sharing basis. Official sources said, according to the proposal, the Indian Oil Corporation had prepared a scheme for selling kerosene in a one-litre pack. The present rate of a pack comes to Rs. 35 to Rs. 37 with 10 per cent customs and 16 per cent excise duty. It is learnt that Mr. Deora urged. Mr. Chidambaram to review the two duties so that kerosene sale in the open market could be made at a feasible prices of Rs. 25 to Rs. 30 a litre. Mr. Deora said that if this scheme was implemented, it would ensure availability of kerosene at a reasonable rate in the open market and curb diversion of the same from the Public Distribution System. Mr. Chidambaram is understood to have responded positively to the proposal. Mr. Deora also brought up the issue of rising international crude oil prices and the need to underwrite the losses being suffered by OMCs. The government has refused to buckle under pressure from the OMCs seeking a hike in petrol and diesel prices.
New Delhi 29-Aug-2007
In an effort at curbing the diversion of subsidised kerosene oil to the black market, the Petroleum and Natural Gas Ministry has submitted a proposal to the Union Finance Ministry for the sale of the product in the open market in a one-litre pack. Petroleum and Natural Gas Minister Murli Deora unveiled the proposal on Tuesday during a meeting with Union Finance Minister P. Chidambaram. Mr. Deora met the Finance Minister to discuss the issue of oil bonds and underwriting the losses of the Oil Marketing Companies on revenue sharing basis. Official sources said, according to the proposal, the Indian Oil Corporation had prepared a scheme for selling kerosene in a one-litre pack. The present rate of a pack comes to Rs. 35 to Rs. 37 with 10 per cent customs and 16 per cent excise duty. It is learnt that Mr. Deora urged. Mr. Chidambaram to review the two duties so that kerosene sale in the open market could be made at a feasible prices of Rs. 25 to Rs. 30 a litre. Mr. Deora said that if this scheme was implemented, it would ensure availability of kerosene at a reasonable rate in the open market and curb diversion of the same from the Public Distribution System. Mr. Chidambaram is understood to have responded positively to the proposal. Mr. Deora also brought up the issue of rising international crude oil prices and the need to underwrite the losses being suffered by OMCs. The government has refused to buckle under pressure from the OMCs seeking a hike in petrol and diesel prices.