ONGC, GAIL, OIL to pay Rs 36,900 cr for fuel subsidy
Public sector Oil and Natural Gas Corp (ONGC), Oil India Ltd (OIL) and GAIL (India) Ltd-are likely to contribute Rs 36,900 crore towards fuel subsidy for the April-December 2011 period.
Oil marketing companies, Indian Oil Corp (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) lost Rs 97,300 crore in revenue on selling diesel, LPG and kerosene at government controlled rates during the first nine months of the current fiscal.
"Of this, the upstream companies have been asked to make good 37.9% or Rs 36,894 crore," a petroleum ministry official said.
The government regulates rates of diesel, domestic LPG and kerosene. The revenue loss incurred by retailers on selling fuel below cost is split between the government and the oil firms.
The government has so far provided Rs 30,000 crore in cash subsidy to make up for more than half of the revenues that IOC, BPCL and HPCL lost on fuel sales during first half. ONGC, Oil India and GAIL India had in first six months paid fuel subsidy at the rate of 33.3% of the revenue loss on fuel sales. And so, they will pay extra in the third quarter to average the payout at 37.9% for the April-December period.
ONGC will pay Rs 30,296 crore in the nine month period, up 42.3% over Rs 21,291 crore payout in the same period a year ago.
OIL will pay Rs 4,478 crore in the April-December period as opposed to Rs 1,596.68 crore payout in the corresponding period of last year.
GAIL's share has been fixed at Rs 2,120 crore for the first nine months of current fiscal.