MS Srinivasan, Secretary, Petroleum Ministry said the time for soft options is over and under-recoveries are at USD 40-45 billion for the industry. He added that he is considering hiking credit lines for oil companies so that supplies are unaffected and is considering restrictions on improper use of diesel. He further stated that there is no diesel shortage in the country.
Crude hit an all-time high of USD 126 per barrel. ONGC Chairman said that under recoveries for the company could be more than Rs 20,000 crore.
There is no shortage of diesel in the country, says Petroleum Secretary MS Srinivasan. However, with crude surging there are no soft options left and it could be time to reconsider a modest price revision. He also said that the government is considering steps to restrict improper use of diesel.
“In my view, it should be seriously considered at this stage because the time for soft options is running out. The last time the price rise was effected; it got adjusted till about USD 67 per barrel. Today, we are staring at USD 126 per barrel and counting. If this is just left unadressed, then by the end of the year we could be looking at a total under-recovery of close to USD 40-42 billion which is not sustainable,” said Srinivasan.
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