Reliance Industries has sought compensation for selling petrol and diesel below cost price."After the administered pricing mechanism (APM) was discontinued in 2002, I (Reliance Industries) should be treated on par with public sector companies," R K Narang, director of Reliance Indutries, said today.He said if part of the losses made on petrol and diesel sales by IOC, IBP, BPCL and HPCL were made up through issue of government bonds and discounts extended by upstream firms like ONGC, OIL and Gail, the same should also be given to Reliance.Reliance, which has set up over 900 petrol stations throughout the country, commands 9% of the petrol and diesel market share.When asked why Reliance was selling fuel at a loss when it was not bound by government pricing dictats, Narang said: "I cannot sell (petrol and diesel) at a price more than my competition."Reliance, he said, had been "unfairly" asked to extend discounts to the tune of Rs 750 crore on the petrol, diesel, LPG and kerosene it sells to PSU retailers. "It's an illogical and irrational call (on Reliance). I am not in marketing of LPG and kerosene, yet I have to pay Rs 750 crore. We should be treated on par with public sector firms," Narang said.Reliance has made out a case for being compensated on par with public sector firms before the high powered Rangarajan committee appointed by Prime Minister Manmohan Singh to look into the pricing of petrol, diesel, LPG and kerosene."I do not agree with the subsidy sharing (scheme of the government). The scheme has led to bleeding of oil companies," he said.Under the subsidy sharing scheme, the losses incurrred by IOC,BPCL, HPCL and IBP on petrol, diesel, lpg and kerosene sale are shared by upstream firms and stand-alone refiners - Reliance, Kochi Refineries, Chennai Refineries and MRPL - and the retailing firms equally.
