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Press Information Bureau
Government of India
Ministry of Petroleum & Natural Gas
20-January-2011 15:57 IST
S. Jaipal Reddy Assumes Charge as the Minister of Petroleum and Natural Gas

Shri S. Jaipal Reddy assumed the charge as the Minister of Petroleum and Natural Gas here today. He was earlier Minister of Urban Development in the present Government.

Speaking on the occasion he stated that thanks to continuation of controls on prices of sensitive petroleum products like LPG, Kerosene and HSD, Oil Marketing Companies (OMCs) are facing under-recoveries of the order of 72,000 crore this fiscal. He added that it was not correct to imagine that entire burden of global price hike is being passed on to the consumers. Already . 13,000 crore have been provided by the Ministry of Finance towards under recoveries in the first two quarters. Besides this, Oil PSUs are contributing substantial amounts. The Minister also elaborated the expectations of his Ministry from the Ministry of Finance to meet the losses caused by volatile international oil prices. Shri Reddy also stated that there are reasons to believe some moderation in global market in next few months.

The Minister also said that he would strive to further improve efficiency of Oil PSUs. Increasing efforts for domestic exploration and production would also be amongst his thrust areas.

RCJ/DT