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BS Corporate Bureau

The petroleum ministry will utilise the data supplied by the newly set up planning cell to take policy decisions in a free market.

The planning cell came into existence with the government deregulating the petroleum sector on April 1, 2002.

This has resulted in the ministry closing the oil pool account and disbanding the oil co-ordination committee.

Till date, OCC used to fix petroleum prices allocate products to be distributed and marketed by state-owned oil companies besides keeping an eye on international crude prices.

Even in a free market, the government will still continue to keep a tight reign with the mounting import bill of crude and petroleum products. Last year, the crude import bill was Rs 800 billion.

Ram Naik, Union Minister of Petroleum and Natural Gas, in an interview early this month had told Business Standard that the data from this planning cell would "equip the ministry with the knowledge to help take appropriate policy decisions".

This cell will primarily collect statistics regarding international price movement of crude and petroleum products, analyse the data and draw a future roadmap for the petroleum sector.

Though the oil-pool account has been closed as on March 31, 2002, the accounts of state-owned oil companies are yet to be finalised and audited by the CAG. Till June 30, staff will remain to finalise and carry out the audit.

Naik pointed out that at present about 180 employees from OCC have been transferred to this cell.

"The employees will be phased out. Though formally OCC is disbanded, but the pool account as on March 31 is to be finalised, to be audited by the CAG for which some staff will remain up to June 30. Then by September 2002 further staff will be reduced and by end March 31, 2003, the number of staff to remain will be roughly around 43 and they will be part of the ministry."

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