The government of India announced today that it is not going to sell its stake in Indian Oil Corp and Oil and Natural Gas Corporation. The government said today that it is not the right time to consider the follow on public offerings in IOC and ONGC.

Petroleum Secretary S. Sundareshan provided all this information on behalf of the government. Sundareshan was addressing to the reporters at New Delhi.

"There is no serious consideration at this juncture and also, this is not the correct market time for FPOs," said Sundareshan.

Also, both the state run companies do not want to raise money through FPO right now. IOC and ONGC said that the shares of the companies are not valued correctly at present time as they are highly impacted by the uncertain fuel pricing policy. The shares of both the companies are highly undervalued at the current levels.

The uncertain fuel policy had cost IOC the most as there is uncertain mechanism to compensate retailers for losses. As per the government policy, the oil retailers are not permitted to sell petrol, diesel, domestic LPG and kerosene even at their cost. The government decides the selling price of sell petrol, diesel, LPG and kerosene.