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What are oil bonds?

Updated: 4/28/2022
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14y ago

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Government owned oil companies in India suffer losses as the prices of petroleum products are administered by the government. Even when the oil prices increase the government is not in a position to rise the prices automatically due to fear of loss of popularity. So the government issued oil bonds to cover the losses or to put it simply the loss was covered by the government without paying a single rupee from its funds. The oil companies can raise loans against the bonds but can they cash the same is a moot question.

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Q: What are oil bonds?
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What oils contain chemical double bonds?

Unsaturated in chemistry means that there are either carbon-carbon double bonds or triple bonds present in the compound. The oil is usually taken to be a naturally occuring vegetable oil which may be fat, a fatty acid- the term is very broad. In these there are only carbon-carbon double bonds. The oil could also be a mineral oil, - i.e. an alkene or alkyne.


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