Petroleum Min seeks oil bonds worth Rs 50,000 cr

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Petroleum Ministry has sought oil bonds worth over Rs 50,600 crore to part compensate state-run companies for selling fuel below the cost during the first half of 2008 calender year.

The Ministry has sought Rs 14,956.17 crore as bonds for IOC, BPCL and HPCL for the last quarter of 2007-08 and an additional amount of Rs 35,672.70 crore for the first quarter of 2008-09 financial year, official sources said.

Sources said for the 2007-08 fiscal, the total revenue loss on sale of petrol, diesel, domestic LPG and kerosene was put at Rs 70,579 crore.

Of those, 50 per cent was to be met through the issue of oil bonds and during April-December 2007 bonds worth Rs 20,333.33 crore have been issued and the Ministry has now sought Rs 14,956.17 crore for the January-March period.

For the April-June quarter, the revenue loss has been estimated at Rs 51,922.70 crore. IOC and sister state-run firms Hindustan Petroleum and Bharat Petroleum are currently selling petrol at a loss of Rs 16.70 per litre, diesel at Rs 27.61 a litre, kerosene at Rs 38.09 per litre and domestic LPG at a discount of Rs 338.53 per 14.2-kg cylinder.