Oil Bonds to be issued

Petroleum ministry has sought oil bonds worth Rs.20,872 crore (Rs 208.72 billion) to compensate state-owned fuel retailers for the losses incurred on selling domestic LPG and kerosene below cost this fiscal.

Minister of state for petroleum and natural gas Jitin Prasada in a written reply to a question in the Lok Sabha said the finance ministry is yet to approve the oil bonds. Indian Oil, Bharat Petroleum and Hindustan Petroleum lost Rs 11,853 crore (Rs 118.53 billion) in revenues on not being allowed to raise LPG and kerosene prices in line with the cost during April- September.

An additional Rs 9,019 crore (Rs 90.19 billion) revenue loss is estimated for third quarter ending December 31, 2009.

The government, which had last fiscal issued oil bonds worth Rs 71,292 crore (Rs 712.92 billion), has not issued any bonds to the three PSUs for revenue losses during the current fiscal.