Rediff India Abroad
 Rediff India Abroad Home  |  All the sections

Search:



The Web

India Abroad




Newsletters
Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article

Home > Business > PTI > Report


PSU oil cos to take Rs 1400 cr hit

September 30, 2004 20:57 IST

Exploration firms Oil and Natural Gas Corp and Oil India Ltd and gas utility Gas Authority of India Ltd may have to bear Rs 1400 crore (Rs 14 billion) LPG and kerosene subsidy burden in the second quarter of 2004-05.

The three upstream companies, who do not retail LPG or kerosene, had given about Rs 1,200 crore (Rs 12 billion) in Q1 to the oil marketing companies -- Bharat Petroleum Corp, Indian Oil Corp and Hindustan Petroleum Corp to compensate them for the under-recoveries on selling the two mass consumed cooking fuels.

Petroleum Minister Mani Shankar Aiyar said, "upstream companies have got windfall profits due to the surge in crude oil prices. They will have to share their spoils."

Subsidy burden on LPG and kerosene, arising out of government's decision not to increase prices despite rise in cost, is estimated at Rs 4200 crore in July-September, of which one-third would be borne by the ONGC, GAIL and OIL. An equal amount would be provided by the government by way of direct subsidy while the remaining would be borne by the oil marketing companies.

"All of them will have to share it (the burden) equitably," Aiyar said declining to disclose the numbers.



© Copyright 2005 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Share your comments


Advertisement






Copyright 2006 Rediff.com India Limited. All Rights Reserved.