NEW DELHI: The government is said to have asked oil PSUs to consider Rs 20,000 crore in share buybacks, ET Now reported quoting agencies.The latest amount was double of Rs 10,000-crore buybacks an ET report anticipated on Monday.The fresh report came on the day when oil minister Dharmendra Pradhan said the government had no reason to interfere in fuel pricing mechanism.On prices charged by oil-producing countries, Pradhan said, Asian subcontinent must be treated at par.
Issue isn't shortfall of oil, it's sentiment.
No problem in sourcing of crude, everyone has to ensure market stability, he said.Till today, producing country determines production and price, Pradhan said, adding that the affordability of consumer countries needs to be taken into account.Indian Oil (IOC) is expected to buy back 3 per cent of its shareholding, valued at Rs 4,000 crore, while ONGCs buyback programme is slated to be about Rs 4,800 crore and Oil Indias Rs 1,100 crore, the ET report said on Monday.
Sources told ET that the revenue department wants oil companies to match last years dividend payout, which was Rs 14,600 crore with Indian Oil paying Rs 5,500 crore, and ONGC Rs 5,200 crore.
The companies have warned that any buyback will drain resources and cut dividend payout, sources said.