A Parliamentary Committee asked the government on Thursday to seek approval of Parliament before privatising oil refiners Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd as the two were nationalised through an Act of Parliament.

"This (divestment) signals a departure from the declared policy (of keeping the strategically important oil sector under state control) and it is required to be endorsed by Parliament," the Parliamentary Standing Committee on Petroleum said.

The Committee, in its report tabled in Parliament on Thursday, said BPCL and HPCL were nationalised in 1970s through an Act of Parliament in view of their strategic importance and a reversal of the decision should be approved by the same body.

It said the Act, which created HPCL and BPCL, had stated that the oil industry is far too important for the economic development of the country and for national security... it will be politically wrong and economically incorrect to leave its control in the hands of private companies.

"Government should formally declare oil sector as a strategic sector and oil companies should be taken out of the list of PSUs slated for divestment," the Committee, headed by Mulayam Singh Yadav, said in its report.

Eight companies including Royal/Dutch Shell, BP Amoco, Saudi Aramco, Petronas of Malaysia, Reliance Industries and Essar Group are in fray for acquiring government's 34.01 per cent stake in HPCL.