Talking to The Financial Express, Union Minister for Petroleum and Natural Gas Ram Naik said that the issue will be taken on a war-footing. ``The government does not have any problem in granting permission to oil companies, but to import crude needs certain expertise,'' reasoned Mr Naik.He added that if the companies acquire these expertise, the government will allow them to import crude individually. Company officials, however, feel that the Union government was not allowing them to import crude.

The companies have been lobbying with the government for quite some time to allow them to import their quota of crude from the international market directly. But there has been no progress on these proposals so far. At present, companies import crude through the canalising agency, Indian Oil Corporation (IOC).

According to industry sources, importing crude through IOC is an expensive proposition. ``When IOC goes to the international market to import crude, prices are artifically jacked up and in the absence of any crude reserves in the country, IOC is forced to buy crude at the existing rate. This adds to the losses of the companies,'' said sources.

Mr Naik added that the Union Cabinet was aware of the difficulties faced by the oil companies, but added that importing crude was not easy as most of the companies did not have the expertise. He admitted that importing crude through one agency resulted in price fluctuations.

Sources in oil companies said that if they were allowed to import crude, they would explore different possibilities. A difference of one per cent in the raw materials could mean profits in crores, source opined. Secondly, since the crude is imported through the IOC, the government decides on the quantum of import.

Oil companies have already set up cells which are studying techniques on importing crude. HPCL, for instance, had set up a crude and shipping cell over a year ago, which is looking after the company's exports. The division has expertise in importing base oil, depending on the demand of the company and hence the same division can also undertake crude import. Moreover, officials feel that they display their expertise only when they are allowed to import crude.

The companies added that they would continue their tie-up with IOC for crude import in the best possible way and the rest of the demand can be imported directly by the companies.