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Oil companies will be protected: PM

Sujay Mehdudia

NEW DELHI: Virtually ruling out any imminent hike in the prices of petrol, diesel, LPG and kerosene, Prime Minister Manmohan Singh on Thursday asserted that the loss- making oil marketing companies (OMCs) would not only be protected but also compensated.

Speaking at the fourth anniversary celebrations of the United Progressive Alliance government at 7 Race Course, Dr. Singh said the government “will not allow the oil companies to suffer.”

The global crude prices on Thursday shot to a record $135 a barrel, increasing import costs of state-run oil companies.

Although the Union Cabinet is meeting on Friday, an increase in the prices of petro products is not on the agenda. It is learnt that Petroleum Minister Murli Deora apprised the Prime Minister of the “financial bankruptcy” faced by the OMCs and sought a compensation package in order to ensure that things work out smoothly.

Mr. Deora, however, said the situation was under control and the OMCs had enough financial backing to import petroleum products for the next three months and there was no need to panic. “The agenda of the UPA government is not to burden the common man and we will stick to it,” he added.

Indian Oil Corporation, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited are losing around to Rs.600 crore a day on sale of petrol, diesel, LPG and kerosene.

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