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18/10/2010 00:00 AST
Oil and Natural Gas Corporation's fuel subsidy bill will increase by nearly 15 per cent to Rs 3,019 crore in the second quarter of this fiscal.
PSU fuel retailers IndianOil Corporation Ltd, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd together lost about Rs 11,295 crore in revenues on selling diesel, domestic LPG and kerosene below the cost of production in July-Septe mber quarter, an official said here.
"Of this under recovery, upstream companies like ONGC, Oil India and Gail India will bear one-third," the official added.
As per this subsidy sharing formula, ONGC will chip in with Rs 3,019 crore by way of discount on crude oil it sells to IOC, BPCL and HPCL. The subsidy outgo will be Rs 2,630 crore higher than that of the second quarter of last fiscal.
The official said Oil India will pay Rs 399 crore and Gail India Rs 346 crore. Of the Rs 3,765-crore upstream subsidy contribution, IOC will get Rs 2,135 crore, HPCL Rs 808 crore and BPCL Rs 821 crore.
While petrol prices were freed from Government control in June, the state oil firms continue to sell diesel, domestic LPG and kerosene at Government dictated price which is substantially lower than the cost of production.
IOC, BPCL and HPCL currently lose Rs 2.01 per litre on diesel, Rs 15.52 per litre on kerosene and Rs 188.47 per cylinder on LPG.
The Hindu Business Line
Ticker | Price | Volume |
---|
(In US Dollar) | Change | Change(%) | |
---|---|---|---|
Brent | 68.51 | -0.34 | -0.49 |
WTI | 67.17 | -0.33 | -0.49 |
OPEC Basket | 69.85 | 0.06 | 0.09 |
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