Deora to meet oil firm heads to discuss fuel pricing

August 18th, 2008 - 9:40 pm ICT by IANS  

New Delhi, Aug 18 (IANS) Petroleum minister Murli Deora will discuss with of heads of state-run oil majors the B.K. Chaturvedi Committee’s recommendations on fuel pricing, the government said here Monday.The financial health of these companies will also feature in the discussions.

A government release said the meeting would also be attended by Minister of State for Petroleum and Natural Gas Dinsha Patel and Petroleum Secretary R.S.Pandey.

The high-powered Chaturvedi Committee on fuel pricing submitted its report last month. It has suggested, among other things, introducing export parity model - which sets price equal to the world price - as well as monthly revision of retail rates.

The pricing suggestion was being done to bring down the massive under-recoveries of oil marketing companies, as they sold fuel at lower subsidised rates.

The Tuesday meeting is set to review the financial position of the three companies, Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, “in the backdrop of under-recoveries incurred by them on sensitive fuels like petrol, diesel, domestic LPG and PDS kerosene”.

Besides, with the festival season looming, Deora will also review the availability of fuel stocks and focus on the distribution of petroleum products in the country.

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