Friday, 20 October 2017

Shri Deora directs OMC Chiefs to ensure adequate availability of LPG & Kerosene

The Minister of Petroleum & Natural Gas Shri Murli Deora has directed all three CMDs of PSU Oil Marketing Companies (OMCs) IOC,

The Minister of Petroleum & Natural Gas Shri Murli Deora has directed all three CMDs of PSU Oil Marketing Companies (OMCs) – IOC, HPCL and BPCL to ensure adequate availability of cooking fuels – LPG and kerosene all over the country specially in view of the ensuring festivals. Addressing Parliamentary Consultative Committee attached to his Ministry here today he asked the Chief Executives - Chairman IOC Shri S. Behuria, CMD HPCL Shri Arun Balakrishnan and CMD BPCL Shri Ashok Sinha to set up full proof systems to meet the demand and to have a quick response to any breakdown in supply at local level that may occur. Simultaneously, the Minister has directed Petroleum Secretary to increase vigilance efforts to curb hoarding and diversion of these vital household fuels, specifically during this festival season. Earlier on 26th September, Shri Deora reviewed the situation regarding the supply of LPG and kerosene all over the Country in view of the forthcoming festival season. The Government has been taking necessary initiatives to ensure availability of these products to the genuine users as also checking their diversion/misuse.
Referring to the sharp increase in the global oil prices, Shri Deora reiterated commitment of UPA Government to protect the interests of ‘Aam Aadmi’(Commonman) by ensuring equitable burden sharing amongst all stakeholders. He informed that the Government is closely monitoring the prices of petrol, diesel, PDS kerosene and domestic LPG. Indian basket of crude oil touched a record high recently. There has been no revision in the prices of these products in spite of consistent rise in international oil prices whereas following softening of prices post August 2006 petrol and diesel prices were reduced on 30.11.2006 and 16.02.2007. He added that the under-recoveries of public sector oil marketing companies (OMCs) is expected to be about Rs. 52,500 crore during this fiscal. Shri Deora pointed out that the Government along with oil PSUs shared most of the burden of rising oil prices during 2006-07. Government issued oil bonds worth Rs. 24121 crore to OMCs to partly compensate them for under recoveries on these products while upstream companies shared to the tune of Rs. 20,507 crore.
Shri Deora also elaborated other recent initiatives of the Government including approval to the proposal of Oil India Ltd. for fresh equity issue of 10 per cent of its paid up capital through “Initial Public Offer(IPO)”. This would enable the company to get listed on the Stock Exchanges. Approval was also given for issue of additional 1 per cent of OIL’s paid up capital to the employees along with divesting 10 per cent in favour of OMCs (IOC, HPCL and BPCL in the ratio of 2:1:1 respectively). Further, he informed that 46 oil and gas discoveries have already been made in the 162 blocks contracted under the first six rounds of New Exploration Licensing Policy (NELP). These discoveries are located in Cambay onland, North East Coast and Krishna-Godavari deep water areas for which development plans by the operators are in progress. In respect of gas discovery by RIL-NIKO in KG basin is likely to commence from June, 2008.
Members made important suggestions to further improve working of the oil sector PSUs. These include suggestions for developing latest infrastructure to train oil & gas personnel, removing malpractice in distribution of domestic LPG along with ensuring its availability, streamlining the process of dealer selection, offering more blocks under NELP-VII from North East, initiative for gas supply in the eastern parts of the country, in encouraging R&D for alternative energy. The members landed excellent performance of oil sector in general and refining crude oil and exporting petroleum products in particularly.
The members who attended the meeting are: S/Shri K. Samba Siva Rao, K. Manvendra Singh, G.V. Harsha Kumar, Jaswant Singh Bishnoi, Prof. Rasa Singh Rawat, Rajen Gohain, Dr. Arun Kumar Sarma, Hemlal Murmu, A.P. Abdullakutty, Lakshman Chandra Seth, Ramakant Yadav, B. Vinod Kumar, Ram Kripal Yadav, K. Yerrannaidu, Kiren Rijiju and Ms. M.S.K. Bhavani Rajenthiran, Ms. Paramjit Kaur Gulshan from Lok Sabha and Shri Nandi Yellaiah, Dwijendra Nath Sharmah, and Prof. Ram Deo Bhandary from Rajya Sabha.
Shri Dinsha Patel, Minister of State for Petroleum & Natural Gas, Shri S. Sundareshan, Addl. Secy.(MoP&NG), Chief Executive Officers of Oil Public Sector Undertakings and senior officers of the Ministry & Oil PSUs also attended the meeting.