Mumbai: The government today issued special bonds to state-run oil companies for a total amount of Rs11,256.92 crore to partially compensate them for selling fuel at discounted prices.

The government also announced the sale of two market stabilisation bonds worth Rs6,000 crore, to be auctioned on January 23.

The oil bonds will have a coupon rate of 7.95 per cent and would mature in 2025, an official statement said.

"The Government of India Special Bonds" worth Rs6,362.25 crore were issued to Indian Oil Corporation, while Bharat Petroleum Corporation Ltd got the security equivalent to Rs2,539.13 crore, and Hindustan Petroleum Corporation Ltd Rs2,355.54 crore.

Investment in these bonds by banks and insurance companies would not be considered as part of a mandatory requirement for them to park funds in government bonds.

However, investments by provident funds, gratuity funds and superannuation funds will be treated as eligible investment.

Prices if crude oil had crossed $100 a barrel mark in the international market earlier this month, although it currently stands at $90 a barrel.

The group of ministers are due to meet on Saturday to discuss a possible rise in retail prices of fuels.