S Sundareshan, who took over as petroleum secretary on Monday, mooted the idea of

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uniform gas pricing across the country. He said India required a gas pricing policy that will ensure gas from various streams that is not differentially priced.

“I am not talking of arithmetical equality of price but all consumers should pay approximately the same price for gas irrespective of source of the gas. We have to ensure that supply of gas is done uniformly. We need to build adequate pipeline network to meet uniformity in price and volume,” he added.

The oil marketing companies (OMCs), whose combined turnover is about Rs 5,50,000 crore, should not suffer under-recoveries. This is another critical policy issue that he proposes to address.

He said he would take steps towards ensuring energy security. “We should emphasise on performance of ONGC and OIL so that they produce more oil and gas. We should encourage private and public sector to see that time from discovery to production is small. It will help us move closer to energy security. We certainly cannot be 100 per cent self-sufficient but can move towards achieving security,” said Sundareshan.

Sundareshan said a decision on fuel pricing would be taken only after government studies the Kirit S Parikh committee report, which may be submitted this week.

“It is for the government to decide to what extent vulnerable sections of society are to be subsidised, particularly in the case of LPG and kerosene. Our concern is OMCs should not suffer. The government will take a view on what should be the pricing of petroleum products that are regulated today,” he said.

Finance ministry has decided to release Rs 12,000 crore to compensate OMCs that have lost Rs 30,000 crore during April-December of FY 2009-10.

To a query on ways to fill the gap in compensation, Sundareshan said oil ministry would continue to negotiate with finance ministry for releasing entire under-recoveries of OMCs. He didn’t rule out the possibility of getting more compensation. “Our understanding would be that compensation would be in cash. But they might be thinking of releasing bonds” ” he said.

He plans to propose amendments to the PNGRB Act 2006 in the next session of parliament. A January 21 order of the Delhi HC dropped the power of the Petroleum and Natural Gas Regulatory Board to authorise city gas distribution . He said the order was being studied.

“One set of amendments will be to correct some errors in the Act, while the main amendment will be in section 16. In this, we are also consulting other ministries,” he said. He said the effort would be to find a solution so that city gas interests do not suffer.