Submitted by Narendra Jakhad on Sat, 12/12/2009 - 20:13
As indicated by the refinery gate prices, the major public sector oil marketing companies (OMCs) are expected to incur huge losses as the companies have projected to book under-recovery of Rs. 45,478 crores on the four petroleum products including, petrol, diesel, domestic LPG and PDS kerosene during the 2009-10 period.
This figure is nearly half as compared with the under recoveries of Rs. 85,000 crore incurred by the OMCs in the year 2008-09. The crude oil prices have been the reason for this difference, which were $80 per barrel in 2008-09 as compared to $71.43 per barrel this year.
The public sector OMCs have incurred under-recoveries of Rs 3.10 on one litre of petrol, Rs 2.55/litre on the diesel, Rs. 17.30/litre of PDS (ration shop) kerosene and Rs
241 on each 14.2 kg cylinder of domestic LPG at Delhi.
Union petroleum minister, Mr. Murli Deora has shown concerns over the condition of the OMCs and indicated that various initiatives are being undertaken for increasing domestic oil and gas production and measures have been taken for the convenience of petroleum-product customers.
Mr. Deora further said that the crude oil production from the block in Rajasthan, which was inaugurated by the Prime Minister in the month of August, is expected to reach at
175,000 barrels/day by the year 2011, when the work on the transport pipeline gets completed. Also the gas production from the Krishna-Godavari basin D-6 field is estimated to increase to almost double, that is, 80 million standard cubic metres per day (mscmd) by March, as compared to the present production of 42 mscmd.
The other substantial initiatives taken by the OMCs include, booking of LPG through SMS, establishment of more Kisan Seva Kendras in rural areas, automation of retail outlets and use of technology to improve the supply and quality of petroleum products. In addition to this, Rajiv Gandhi Gramin LPG Vitrak Yojana has been launched in order to extend LPG supplies over the next five years, especially in rural areas, which have low coverage of these products.
Source: http://www.stockwatch.in/low-fuel-prices-hit-major-oil-marketing-companies-third-quarter-24264
Comments
Post a Comment