In its fourth report tabled in parliament recently, the standing committee on petroleum and chemicals said it was regrettable that government allowed the deficit to accumulate, delaying the payment of huge amount to oil-sector PSUs.

Delay in payment to PSUs affected their project-implementation programmes, the committee said, adding government had assured that henceforth deficit would not be allowed to occur, the report said.

The committee had recommended that the new concept of"zero deficit" should be ensured through enhanced efficiency of the oil sector and not by increasing prices of petroleum products every now and then.

It said it was astonishing to note that even though international prices of crude oil were falling since last year after the government had proposed a steep hike in prices of petrol in the country throughthis year's budget.An amount of Rs 12,984 crore has been shown as payment to the oil companies in the settlement of their claims under the administrative pricing in the revised budget for 1997-98, the committee said.