: The Kirit Parikh committee has recommended measures to deregulate the petroleum retailing sector. That would help public sector oil marketing companies like Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) as also private retailers such as Reliance Industries Ltd and Essar Oil.
However, the committee has not taken note of the plight of upstream companies like ONGC, Oil India Ltd and GAIL India that are reeling under the subsidy burden. It makes one wonder if energy security is no longer a policy goal for the government. For example, the committee has supported measures like determining under-recovery on domestic LPG and PDS kerosene based on the import parity principle that should help the OMCs as well as private refiners. It has also recommended mopping up a portion of the incremental revenue accruing to ONGC and OIL from their production in nomination blocks and providing cash subsidy from the central budget to meet the remaining gap. Oil & gas exploration is supposed to be the backbone of every country’s energy security. India meets about 80% of its crude oil requirement through imports. And the country’s dependence on imported oil is expected to increase in the coming years as its economy is on a high growth trajectory.
Full Story: Parikh committee turns a blind eye to energy security - Financial Express
However, the committee has not taken note of the plight of upstream companies like ONGC, Oil India Ltd and GAIL India that are reeling under the subsidy burden. It makes one wonder if energy security is no longer a policy goal for the government. For example, the committee has supported measures like determining under-recovery on domestic LPG and PDS kerosene based on the import parity principle that should help the OMCs as well as private refiners. It has also recommended mopping up a portion of the incremental revenue accruing to ONGC and OIL from their production in nomination blocks and providing cash subsidy from the central budget to meet the remaining gap. Oil & gas exploration is supposed to be the backbone of every country’s energy security. India meets about 80% of its crude oil requirement through imports. And the country’s dependence on imported oil is expected to increase in the coming years as its economy is on a high growth trajectory.
Full Story: Parikh committee turns a blind eye to energy security - Financial Express
