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Rediff.com  » Business » Govt seeks Rs 15,546-crore fuel subsidy from oil firms

Govt seeks Rs 15,546-crore fuel subsidy from oil firms

July 31, 2014 13:10 IST

OilIndian Oil Corporation will get Rs 8,107 crore (Rs 81.07 billion) from upstream firms in fuel subsidy support for the first quarter while Hindustan Petroleum Corporation Ltd will get Rs 3,608.88 crore (Rs 36.08 billion).

The Oil Ministry has fixed the subsidy payout by upstream firms like Oil and Natural Gas Corporation and Oil India Ltd at Rs 15,546.65 crore (Rs 155.46 billion) for the April-June quarter.

Of this, ONGC will pay Rs 13,200.10 crore (Rs 132 billion) and another Rs 1,846.55 crore (Rs 18.46 billion) will come from OIL.

State gas utility GAIL will pay Rs 500 crore (Rs 5 billion), official sources said.

Fuel retailers IOC, HPCL and Bharat Petroleum Corporation Ltd sell diesel, domestic LPG and kerosene at government controlled rates which are way below the cost.

The losses they incur is compensated through a combination of government cash subsidy and support from upstream firms.

For the April-June quarter, the government has fixed upstream payout at Rs 15,546.65 crore (Rs 155.46 billion).

Of this, IOC will get Rs 8,107.21 crore (Rs 81.07 billion), BPCL Rs 3,830.56 crore (Rs 38.3 billion) and HPCL Rs 3,608.88 crore (Rs 36.08 billion), they said.

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