"There is no proposal [to merge IOC and ONGC]," said India's Petroleum Secretary, B K Chaturvedi.
He was responding to reports by the India media that claimed the Disinvestment Ministry suggested ONGC be merged with IOC to realise its retail ambition instead of allowing it to bid for oil refiner Hindustan Petroleum Corp.
Mr Chaturvedi said it was government policy to encourage the two oil companies to develop on individual strengths.
Meanwhile, India said it would petition OPEC to increase production in order to lower oil prices, which hit US$33 a barrel mark last week
"I will certainly ask OPEC to increase production [of crude oil] to bring prices in the lower half of the US$22-28 a barrel price band set by them," said Petroleum Minister Ram Naik.
"India being 70 per cent import dependent, we would certainly like to see the prices come closer to $22 a barrel, which is what a developing country like ours can afford."
