ONGC CMD Sudhir Vasudeva told CNBC-TV18 that the company is in talks with ministries on reduction of subsidy burden.
After the finance minister, now the comptroller and auditor general wants the oil marketing companies to switch over to export parity pricing of petro products, reports CNBC-TV18‘s Nayantara Rai.
According to oil marketing companies (OMCs) switching to the EPP model will make them sick. They also fear that with this regime retaining foreign direct investment (FDI) would become difficult.
In order to bring down the deficit by nearly Rs 15,000 crore, the finance ministry yesterday decided to change the pricing policy for petrol and diesel from "trade parity" to "export parity". The move is likely to reduce the selling price of fuels and impact the profitability of the already ailing PSU oil marketing companies.