Why Congress Issued Oil Bonds? Big Debate as Petrol Prices Rise | Rahul Gandhi | Hari Prasad

Описание: Why Congress Issued Oil Bonds? Big Debate as Petrol Prices Rise | Rahul Gandhi | Hari Prasad

During the United Progressive Alliance (UPA) government led by Manmohan Singh, fuel prices in India were heavily controlled by the government. To keep petrol, diesel, and LPG prices low for consumers, the government did not allow oil companies to sell fuel at full market prices.

Because of this, public sector oil companies like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum faced huge financial losses.

To compensate these companies without immediately paying cash from the budget, the government issued Oil Bonds. These bonds were essentially IOUs from the government, promising to pay the oil companies later with interest.

Between 2005 and 2010, the UPA government issued oil bonds worth around ₹1.4 lakh crore. Over the years, the government had to repay both the principal and interest, which put pressure on future budgets.

Today, during fuel price debates, the issue of oil bonds issued during the UPA era is often brought up in political discussions to explain part of the financial burden carried by later governments.