Oil sector is country''s largest merchandise exporter

25 June 2007

Kochi: The oil industry is currently the country''s largest merchandise exporter with exports of over $17.5 billion over the last year, union minister for petroleum and natural gas, Murli Deora has said. These figure are only expected to go up during the 11th plan period.

Deora was speaking at the foundation stone laying ceremony, for the phase II part of the capacity expansion-cum-modernisation project of BPCL''s Kochi refinery.

Deora said the oil industry has been working to improve the oil security of the nation and refinery expansions were among the main strategies, he said. Another measure was to introduce bio-fuels, particularly ethanol-blended petrol (EBP), across the country, he said.

"We have already notified, effective from November 2006, that the whole country except a few identified areas will be covered under the 5 per cent EBP programme with the aim of enhancing energy security," he said.

The oil companies will introduce EBP in a few days time, Deora said.

Deora pointed out that the government and the oil companies were together sharing 87 per cent of the burden of under-recoveries caused by high oil prices this year.