Calling a ministerial group formed to look into their wage demands an eyewash, PSU oil firm executives today said they will go on indefinite strike from January 7, as the government has failed to live up to its promises of giving officers a fair deal.

The Oil Sector Officers' Association, an amalgamation of officers' unions of 14 PSU oil firms, said the November wage hike approved by the government work out to only 17 per cent.

"It's do-or-die this time. Officers feel betrayed by the numerous unkept promises made by ministers," OSOA president Amit Kumar told reporters in New Delhi.

He said a grouping of Home Minister P Chidambaram, Oil Minister Murli Deora, Heavy Industries Minister Santosh Mohan Dev and Minister of State for Finance P K Bansal charged with looking into their demands, was not even a Group of Ministers.

"This so-called panel (announced Friday evening) has not been officially notified. There are no terms of reference or a time frame for addressing our issues," Kumar said.

A strike in oil PSUs can cripple the already strained economy beginning with disruption in fuel supplies to airlines and slowly impacting auto fuel and cooking fuel supplies.

"On November 17, 2008, Dev more than agreed with our demands and promised to get us a fair deal. He stated that the then Finance Minister P Chidambaram had agreed for a five-year periodicity of wage revision. But three days later we got peanuts and we will have to live with these for the next 10-years," he said, adding Deora had made similar promises.

OSOA wants 50 per cent dearness allowance merged with basic pay with effect from January 1, 2005, in line with the one approved for the central government employees in January 2006.