Question : REFORM IN OIL SECTOR



(a) whether the Government has a proposal to bring about reform in the oil sector;

(b) if so, the details thereof; and

(c) the steps taken by the Government in this regard?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI JITIN PRASADA)

(a) to (c): In order to enable the oil Public Sector Undertakings (PSUs) to emerge as efficient and competitive entities in the globalized hydrocarbon sector, Government has delegated enhanced decision making powers to them, to provide them a high degree of functional autonomy. Accordingly, following Oil PSUs have been granted Navratna status:

(i) Oil & Natural Gas Corporation Limited

(ii) Indian Oil Corporation Limited

(iii) Bharat Petroleum Corporation Limited

(iv) Hindustan Petroleum Corporation Limited

(v) Gas Authority of India Limited

With the dismantling of the Administrative Price regime with effect from 01.04.2002, pricing of all petroleum products except PDS kerosene and domestic LPG are to be market determined. However, to protect the common man from the inflationary impact of high international oil prices, Government has been modulating retail prices of the four sensitive petroleum products namely; petrol, diesel, PDS kerosene and domestic LPG.

Private sector participation has been allowed in upstream, midstream and downstream sectors of oil industry including the retail sale of fuels.