Oilcos plan to ration fuel supply

NEW DELHI: Fuel consumers in the country could be in for some hard times if the threats by oilcos are to be taken seriously. Oil marketing companies are planning to cut supplies of cooking gas, diesel, kerosene and even petrol. The cash-strapped companies���IOC, HPCL and BPCL���have told the government that they would soon be forced to impose quotas for consumers of cooking fuel even while completely stopping new connections.

In an election year, however, it is unlikely that the government will allow companies owned by it to go ahead with their threat. An official in the oil ministry said, ���Oil PSUs have not taken any such decision. OMCs give several suggestions, including increasing prices of auto fuel, LPG and kerosene. The government considers all suggestions and takes the most appropriate action in the benefit of all.���

Top honchos of all the three oil companies met petroleum ministry officials earlier this week to apprise the government of the growing losses. ���Demand will have to be restricted to supplies. We are not in a position to import anymore. It is no longer a question of making profits. We do not have the cash to import and meet the demand,��� the top boss of an oilco said.

Pushed to a corner, the oilcos have suggested some radical measures to cut losses. These include no additional LPG connections, quota per family, no imports of diesel and petrol, and continuance of quota for kerosene. ���Subsidies and quotas go together. If prices have to be subsidised and kept at artificial levels, consumers need to start getting used to rationing as well,��� a senior oil company official said. According to OMCs, their under-recoveries are expected to be around Rs 180,000 crore in the current fiscal.