New Delhi: After being pointed out by the Comptroller and Auditor General of India (CAG) for favouring Reliance Industries’ KG-D6 field cost, Petroleum Minister S Jaipal Reddy met Prime Minister Manmohan Singh on Tuesday to brief him over the controversy. The Minister also discussed the mounting losses of oil firms with each passing day.

Recently, the CAG had observed that the Petroleum Minister at the cost of the government’s own financial stakes went out of way to help Mukesh Ambani’s Reliance Industries during the development of KG-D6 basin in 2004-06.

According to sources, the report also rapped Oil Ministry and its technical arm DGH for allegedly favouring Reliance by allowing it to double KG-D6 gas field’s cost.

Although the CAG had asked the Ministry to reply in a few weeks of time, sources firmly believed that Petroleum Ministry will take at least 5-6 weeks to file an appropriate response.

In another issue, it is also expected that Reddy apprised the PM of the precarious financial state of the oil firms and their overburdening demand to increase the prices of petrol, Diesel and LPG in the country.

Understandably, an empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee, which decides on revising rates of the sensitive products, has also not met since June last year even though crude oil prices have bounced upward by about 50 per cent.

Incidentally, Reddy last week also met Pranab to discuss the concerns of Oil Ministry, which is facing intense pressure from international markets.

(JPN/Bureau)