IOC divestment on course

The Centre has, meanwhile, received requests from private-sector oil refiners, like Essar Oil and Reliance Petroleum, for permission to set up pipeline networks that were independent of Petronet India. Ramamurthy said a regulatory body might be formed to monitor the development of a pipeline infrastructure for the oil industry.

Action plan for augmenting oil stocks:

The minister alsoannounced that the Centre had initiated a plan for augmenting the country8217;s capacity for storing crude oil and petroleum products, to international levels. 8220;Currently the oil industry maintains a mandatory inventory for crude oil and petroleum products, which ensures security in the unlikely event of any major supply disruption.8221; Engineers India is working on a comprehensive plan to augment tankage facilities, which would, for a start, enhance the country8217;s oil-stocking capacity so that it was equal to 21 days8217;s consumption. Worldwide, oil inventory is usually equal to at least 45 days8217; consumption.

European governments maintain oil stocks for 22 days, while the petroleum industry keeps an inventory of 64 days, taking the total tally to 86 days.

North America has a capacity to store petroleum products equal to 80 days8217; consumption.

Ramamurthy said storage tankers and underground storage facilities would be built along the east coast over the next three years to augment the country8217;s holding capacity,so that it was equal to 21 days8217; consumption. quot;We have a floating tankage,8221; he said.

The petroleum minister, who had hinted at a decline in diesel prices in Chennai recently, hedged a direct question, saying that the price had been pegged down thrice since the partial decontrol beginning April this year. quot;Diesel prices will remain where they are for now,quot; he said.