Tariff Commission for reducing kerosene quota under PDS

"The cost base Study has made recommendations on pricing policy to be followed for upstream companies and oil marketing companies (OMCs)... Reduction of entitlements of kerosene under PDS and need to encourage cleaner sources of energy," Minister of State for Finance Namo Narain Meena said in written reply in the Rajya Sabha.

He was replying to a query on whether the Department of Expenditure has asked the Tariff Commission for a cost-based study of petroleum products of national OMCs.

The Commission has further suggested consolidation of operations under various segments of the three OMC, separation of refinery and marketing functions, necessity to create a mechanism for better coordination regarding capacity expansion tax reforms, Meena added.

The Commission, which comes under the Commerce and Industry Ministry, is an expert body which recommends appropriate tariff level keeping in mind the larger economic interest of the country. It also undertakes studies on behalf of the government.

The Study was aimed at suggesting the reference price to be adopted for estimating under recoveries of public sector OMCs, methodology for estimating quantum of under recoveries and making recommendations on burden sharing mechanism for under recoveries with stakeholders.