Govt hints at petro price hike

Petroleum minister Mani Shankar Aiyar said in the Lok Sabha that ‘‘Government’s income has also taken a hit of Rs 4,000 crore while OMCs’ under-recoveries could reach Rs 40,000 crore this year, up from Rs 20,000 crore last year. In such a scenario, some burden will have to be borne by consumers.’’

He went on to add, ‘‘The relentless increase in international prices has put an unduly large burden on OMCs, threatening to make them sick. The government is continuously monitoring the price situation with a view to taking appropriate remdial measures.’’

He, however, sought cooperation from state governments, saying these should adjust sales tax to reduce burden on consumers. Unfortunately, sales tax, which is a state subject, has not undergone a change in the last 13-14 months, the minister said, but assured the house that government would take a decision on price rise, if warranted, only after consultations with its allies.

Aiyar also said that oil-producing companies were using new technologies – improved oil recovery (IOR) and enhanced oil recovery (EOR) – for stepping up production, especially at ONGC’s Mumbai High.

India mulls tapping oil from BTC pipeline

New Delhi: Indian oil companies will consider using the Baku-Tiblisi-Ceyhan (BTC) pipeline, but a decision on this would be taken after considering the economics once the pipeline is operational by the end of this year, the Lok Sabha was informed. In a written reply, Aiyar said it was the constant effort of the government to diversify the sources of its crude supplies and India could consider using the Ceyhan terminal of the BTC pipeline in Israel. However, India has not signed any agreement with Israel in this regard, he said. ens