Click to play videoNew Delhi: Indian Oil Corporation, the country's biggest oil marketing firm has said that that if the prices of petrol and diesel are not increased, then there will be no option but to ration fuel sold to consumers.
This would mean that petrol pumps across the country could refuse to fill fuel in your vehicles if demand outstrips supply from the oil marketing company.
The Indian Oil Corporation says that the impact of rationing of fuel supplies, including diesel, will only be felt in the next 6 months.
CNN-IBN's Vertika Kanaujia spoke to IOC Chairman and Managing Director, S Behuria, on the proposals being considered and their impact.
S Behuria: We feel that we have sufficient refining capacity for India.
Vertika Kanujia: For how long?
S Behuria: At least for six months, we don't think we have a problem.
Vertika Kanujia: And after that?
S Behuria: After that, we'll see because the demand is also very unpredictable.
Vertika Kanujia: What are the kind of proposals you've kept in front of the Government?
S Behuria: The Government knows that 200,000 crores will have to be met, most of it through a combination of some price increase, some duty reduction, some increase in bonds, some contribution from ONGC.
Vertika Kanujia: There have been talks about some cess on income tax. What do you think about that?
S Behuria: Anything that comes as a benefit to us, I'll be very happy. How much will come, that's what we'll have to see.
Vertika Kanujia: What's the quantum you're looking at right now?
S Behuria: Out of 200,000 crores, we've said that anything more than 50,000 crores, the oil industry cannot pay, 50,000 crores - out of which bonds must come, upstream must come. Oil industry's ability to bear under-recovery cannot exceed 10,000 crores.
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