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| The government is likely to issue oil bonds worth Rs 10,000-12,000 crore to compensate the four PSU oil retailing firms for not raising LPG and kerosene prices. |
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| "The hike will bring an additional revenue of Rs 5,000 crore to oil retailers in the remaining part of the current fiscal. This is insufficent to cover the Rs 40,169 crore revenue loss anticipated in 2005-06 on selling petrol, diesel, LPG and kerosene," S C Tripathi, petroleum secretary, said today. |
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| Of Rs 19,634 crore revenue loss on LPG and kerosene, Rs 3,600 crore would come from direct budgetary subsidy. Oil bonds would be issued for the remaining amount, he said. |
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| "My estimate is that the finance ministry will issue oil bonds for at least Rs 10,000 crore in the next couple of days," Tripathi said. |
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| Upstream firms like ONGC would contribute one-third of the revenue loss. "At least Rs 13,000-14,000 crore would come from upstream firms by way of discounts." |
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| In addition, standalone refiners and private refiners would give discounts to the tune of Rs 5,000 crore of which Rs 1,200-1,500 crore would come from Reliance and MRPL, Tripathi said. |
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S Behuria, chairman of IOC, said the price hike, coupled with
oil bonds which oil companies can trade in the market to get cash immediately, would improve the liquidity position of companies. |
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| Tripathi said the finance ministry would issue the bonds after consultations with the Reserve Bank of India by the end of the week. |
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