By IANS
New Delhi : Expressing concern over the steep rise in global crude oil prices, Prime Minister Manmohan Singh said Monday that the government will examine Jan 17 all options to cushion losses by oil marketing companies.
Singh said a group of ministers was expected to meet Jan 17 to look at all the possibilities.
“The steep rise in international crude prices is a cause of concern and the group of ministers will look at the various available options to moderate its impact on oil marketing companies,” Singh said.
The prime minister, however, refused to say if the government would raise fuel prices so that oil marketing companies are able to cut their losses.
He was speaking to reporters at the Rashtrapati Bhavan after the swearing-in of the newly appointed Comptroller and Auditor General (CAG) of India, Vinod Rai.
The combined losses of oil marketing companies in 2007-08 are projected to breach the Rs.700 billion ($17.8 billion) if the government does not allow them to raise prices.
The government has so far issued bonds worth Rs.235 billion ($6 billion) to oil marketing companies in fiscal 2007-08 as its contribution under the subsidy-sharing formula.