ONGC said the government may have to pass on additional burden to the companies responsible for oil exploration and production.
New Delhi: The Oil and Natural Gas Corporation (ONGC) said that a hike in diesel price is the only option to reduce the oil pool deficit as the cost of production has increased significantly.
ONGC also expressed its fear that the risk of subsidy burden in Fiscal Year 2014 is higher than in Fiscal Year 2013. It added that the government may have to pass on additional burden to upstream companies that are responsible for exploration and production of oil.
ONGC said that prices will have to increase to at least $65 per barrel of crude oil, up from $40 per barrel as oil companies are barely recovering costs.
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