The top five decision makers in the oil ministry collectively have around 20 months of experience in the sector even as India, the third largest consumer of oil in Asia, struggles to keep pace with oil prices, which have doubled in the last one year.
The five administrative officers, with backgrounds ranging from steel to personnel and administration, will now have to take crucial decisions on pricing petroleum products that will have a cascading effect on inflation, which has touched a 13-year high.
"The fact that all decision makers in the ministry have very little experience of the industry is worrisome," said a Delhi-based analyst who advises oil companies. "And this at a time when the industry is passing through unprecedented challenges."
The $132-billion oil and gas sector in India, like in China and other Asian countries, is regulated, with government-owned companies controlling over 85 per cent of oil and gas production, over 70 per cent of refining capacity and almost all of fuel marketing.
Outgoing Petroleum Secretary M S Srinivasan had experience of 80 months, nearly four times the collective experience of the new officers in charge of the oil ministry.
R S Pandey will take over as the steel secretary on August 1. The position of joint secretary (exploration) is vacant after A K Jain's term ended last month.
The joint secretary (refineries and pricing), L N Gupta, has been in charge for just over a month. Joint Secretary (international co-operation) Sunil Jain has been in the oil ministry for around four months. Additional Secretary S Sundareshan, who was the commodities regulator earlier, has 16 months of experience of the oil sector.
"None of these officials have had any experience of working in the oil sector before they took over their present positions," said a top official of a state-owned oil company. Additional Secretary and Financial Advisor P K Sinha has so far had the longest stint in the ministry -- over four years.
The country's oil marketing companies sell petrol, diesel, kerosene and cooking gas at subsidised prices, as a result of which their finances are strained. Production of oil from the country's oil fields is also stagnating even as annual demand is growing at over 12 per cent.
"Just juggling all of these issues is a huge task in itself," said another top official of an oil company.
Government officials, however, said the lack of experience of the decision makers would not impact the sector at all. "It takes them only a few months to adjust. The thought processes flow from the various wings of the ministry," said a senior oil ministry official.
"The backbone of the ministry -- the director, under-secretaries and all the others -- is still intact," he added.
