Oil firms seek compensation from finance ministry
18 May 2012 4:19 AM GMT
The petroleum ministry has sought cash subsidy of Rs 49,872 crore from the finance ministry to compensate state-owned oil firms for selling fuel at government controlled rates in the January-March quarter.
Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp together lost Rs 148,231 crore on selling diesel, domestic LPG and kerosene at rates lower than cost in 2011-12, an oil ministry official said.
Out of this, the government had provided Rs 45,000 crore in cash subsidy during April-December period. Upstream oil firms like Oil and Natural Gas Corp (ONGC) would provide Rs 53,359 crore for the fiscal, leaving a unmet gap of Rs 49,872 crore.
'We hope to hear from finance ministry sometime next week,' he said.
State-owned oil firms lost Rs 81,192 crore on sale of diesel during the 2011-12 fiscal, Rs 27,352 crore on kerosene and Rs 29,997 crore on domestic LPG.
Besides, they also lost Rs 4,890 crore on sale of petrol, a commodity which was decontrolled in June 2010 but rates haven't moved in tandem with cost due to political considerations.
The official said the oil marketing companies also incurred an interest payout of Rs 4,800 crore due to delay in payment of cash subsidy by the government.
Of the Rs 1,48,231 crore revenue loss, IOC's share was Rs 80,305 crore, HPCL Rs 32,771 crore and Rs 35,155 crore was the revenue loss reported by BPCL.
Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp together lost Rs 148,231 crore on selling diesel, domestic LPG and kerosene at rates lower than cost in 2011-12, an oil ministry official said.
Out of this, the government had provided Rs 45,000 crore in cash subsidy during April-December period. Upstream oil firms like Oil and Natural Gas Corp (ONGC) would provide Rs 53,359 crore for the fiscal, leaving a unmet gap of Rs 49,872 crore.
'We hope to hear from finance ministry sometime next week,' he said.
State-owned oil firms lost Rs 81,192 crore on sale of diesel during the 2011-12 fiscal, Rs 27,352 crore on kerosene and Rs 29,997 crore on domestic LPG.
Besides, they also lost Rs 4,890 crore on sale of petrol, a commodity which was decontrolled in June 2010 but rates haven't moved in tandem with cost due to political considerations.
The official said the oil marketing companies also incurred an interest payout of Rs 4,800 crore due to delay in payment of cash subsidy by the government.
Of the Rs 1,48,231 crore revenue loss, IOC's share was Rs 80,305 crore, HPCL Rs 32,771 crore and Rs 35,155 crore was the revenue loss reported by BPCL.
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