The Union Minister for Petroleum and Natural Gas, Veerappa Moily, said on Wednesday that he had asked the Finance Ministry to fix export parity prices for petroleum products. Speaking after laying the foundation of the central public library at Chikkaballapur, near Bangalore, Mr. Moily said, “We have asked the oil marketing companies to prepare a report on the issue, which should be ready today or tomorrow.”

Mr. Moily said his ministry was “in constant touch” with the Finance Ministry on the issue of petroleum pricing after the cut in subsidies. He said the quantum of the hike in diesel prices “is up to the oil companies, although we have asked them to keep it in the 40-50 paise range.”

Asked if the government would reconsider the policy on bulk sales of diesel, Mr. Moily said, “We are not going to change the policy for bulk buyers of diesel at market prices.” He said tenders for supply of ethanol had been called, and that the oil marketing companies would decide on the issue soon.

Referring to the issue of pricing of natural gas from Reliance Industries’ Krishna-Godavari gas fields, Mr. Moily said his ministry would discuss the issue “internally.” He said the oil marketing companies had been discussing the prospect of establishing common storage facilities for aviation turbine fuel. He said he had discussed the issue with the Minister for Civil Aviation, Ajit Singh.

More In: Economy | Business | Markets