Chief Economic Adviser with the Fin Ministry, Kaushik Basu says PSU oil companies are being run inefficiently.
State-owned oil marketing companies in the country are being run inefficiently, Chief Economic Adviser with the Finance Ministry Kaushik Basu said today.
"The PSU oil marketing companies are inefficient and there is plenty of scope of improving the margins through better operations," Basu told reporters on the sidelines of an event here.
Basu said as in the case of telecom and airline industries, the Indian refining sector would have to be opened up to private competition so that operational costs were reduced and margins improved.
When it was pointed out that there were two private players namely Essar and Reliance, Basu said that they had been squeezed out as they were not getting government subsidy on selling petro products unlike the PSU firms in the total controlled regime.
"I have prepared notes on this and sent it to the ministry," he said.
On raising prices of petrol, he said this would definitely have an impact on prices.
On diesel, LPG and kerosene, he said that these prices should also be freed and direct subsidy should be given to the poor.
Article from The Economic Times.
No comments:
Post a Comment