New Delhi,6 May:(Rajya Sabha):The gross under-recoveries of the Public Sector Oil Marketing Companies (OMCs) on the sale of sensitive petroleum products i.e. Petrol, Diesel, PDS Kerosene and Domestic LPG for the year 2007-08 are estimated to be approximately Rs.77,303 crore.The Government has a multi-pronged strategy to contain the adverse impact of the high international oil prices on the economy and on consumers which includes rationalization of duties and taxes on petroleum products, besides streamlining the delivery system of PDS Kerosene for better targeting of the subsidy and to plug leakages, encouraging the use of Bio-fuels, etc.
The Government has also issued Oil Bonds to the OMCs worth Rs.20,333 crore and Upstream Oil Companies have contributed Rs.15,873 crore to partially compensate the under-recoveries of OMCs during the year 2007-08 (April-December, 2007). For the same period, the impact absorbed by the OMCs after the issue of Bonds and subsidies by the Upstream Oil Companies, is likely to be Rs.11,413 crore.The above information was given by the Minister of State for Petroleum & Natural Gas Shri Dinsha Patel in a written reply in the Rajya Sabha today.