Facing the heat of rising fuel prices, the government is looking towards the state-owned Oil and Natural Gas Corporation (ONGC) to lessen its burden.

According to a report in The Indian Express, the Union Petroleum Ministry is planning to direct ONGC to sell its crude oil at prices below the international rate.

“The ministry plans to direct ONGC to sell its crude oil at below ruling international prices by capping the price at, say, $70 for the entire fiscal year,” an official was quoted as saying in the report.

The plan could be a big cushion for the oil prices as ONGC is the source for nearly 20% of crude oil supplies in the country, the report said.

However, the discussions are in the initial stages and no price cap has been yet fixed.

“The idea has been accepted in principle but the methodology and the numbers are to be worked out,” an official was quoted saying in the report.

The development comes at a time when the ruling BJP-led government is facing heat over unprecedented rise in price of petrol and diesel.

The ruling government, which introduced daily revisions of fuel price has been forced to be on the defensive due to this hike.

First Published:May 24, 2018 11:12 AM IST