Vadodara, Apr 7 (ANI): Chairman and Managing Director of Oil and Natural Gas Corporation (ONGC) Sudhir Vasudeva is hoping for an early bail out by the Central Government in the wake of a hike in cess on the domestic production of crude oil.
"This is our earnest request before the l government that we should get remunerative prices for oil as outlays are only done through the internal resource generation. Our cost of production is around 38 dollars per barrel including the statutory levels," Vasudeva told media here.
"With the increase of six dollar in cess the cost has gone up to 44 dollar. If we don't even get 55 dollar there is not much margin. Our outlay is of 330 billion dollars and if we don't remunerative prices then how can we generate then? In that case we have to use our reserve and surplus. So, we have written to the government as it has helped us considerably in the past. I have complete faith in the government that it would bail us out of this situation," he added.
The government increased cess to Rs.4,500 a tonne in the 2012-13 budget.
Many private companies like Cairn India, in which Vedanta has major stakes has already approached the Prime Minister's Office (PMO) against the hike.
According to media reports, the central government might take up cases of public sector exploration companies like ONGC and Oil India.
Petroleum and Natural Gas Minister S. Jaipal Reddy had earlier confirmed that oil companies are losing Rs.7.67 per litre on the sale of petrol throughout the country. (ANI)
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