Talks on compensating PSU oil cos inconclusive

A meeting between petroleum minister Murli Deora and finance minister Pranab Mukherjee remained inconclusive on the issue of compensating state-run fuel retailers for the losses they incur on selling fuel below cost.

"No decision was taken. . .We have not reached any finality on the issue," Deora told reporters after the 75- minute long meeting.

Petroleum secretary RS Pandey said the ministry explained the revenue losses that state run companies were incurring on sale of petrol, diesel, domestic liquid petroleum gas and kerosene.

"The ministry of finance will now revert to us on the issue," Pandey said. Asked if the compensation to oil companies will be in the form of oil bonds or cash, Pandey said: "It is most likely cash."