RIL wants compensation for selling petro products below cost

New Delhi: Reliance Industries (RIL) has sought compensation similar to what is being offered to public sector oil marketing companies (Indian Oil Corporation, IBP, Bharat Petroelum and Hindustan Petroleum) for selling petrol and diesel below cost price.

RIL, said that if part of the losses suffered by the OMCs on sale of petrol and diesel is compensated through the issue of oil bonds and discounts extended by upstream firms such as Oil and Natural Gas Corporation, Oil India Ltd and GAIL (India), then the same should also be offered to RIL.

A company spokesperson said after administered pricing mechanism was dismantled in 2002, Reliance Industries should be treated on a par with public sector companies. He also said that the retail price of petrol barely makes up for its cost of production. Diesel is being sold at a loss of Rs2 a litre.

Asked why Reliance was selling fuel below cost when it was not bound by any Government diktat unlike the PSU oil companies, he said the company could not sell petrol and diesel at a price higher than its competitors.