Distortions in pricing of petroleum products - Question raised in Rajya Sabha, 18/02/2014
Statement of the Minister of State in the Ministry of Petroleum and Natural Gas Smt. Panabaaka Lakshmi in response to Rajya Sabha unstarred Question No. 2618 for 18th February, 2014, asked by Shri Ajay Sancheti regarding distortions in pricing of petroleum products. The minister stated in Rajya Sabha that "in order to insulate the common man from the impact of rise in international oil prices and the domestic inflationary conditions, the Government has been modulating the Retail Selling Price (RSP) of sensitive petroleum products viz. Diesel (in retail), PDS Kerosene and Subsidized Domestic LPG, resulting in incidence of under-recovery to the Public Sector Oil Marketing Companies (OMCs). The Government has evolved a Burden Sharing Mechanism to ensure that the burden of under-recoveries incurred by OMCs is shared by all the stakeholders."