ONGC, OIL and GAIL asked to share Rs36,894 crore of government's fuel subsidy bill
06 February 2012
The government has asked Oil and Natural Gas Corporation (ONGC), Oil India Ltd (OIL) and GAIL (India) to share Rs36,894 crore of the Rs97,300 crore it owes downstream oil refining and marketing companies for selling fuel at subsidised rates.
The government owes state-run oil marketing companies - Indian Oil Corp (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) – Rs97,300 crore in fuel subsidy bill for the first nine months of the current fiscal (April-December 2011-12), official sources said.
The government sets the price limit for fuels like diesel, kerosene and LPG, which are widely consumed and are hence politically sensitive.
"Of this, the upstream companies have been asked to make good 37.91 per cent or Rs36,894 crore," the official said.
The government has so far provided Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation (HPCL) Rs30,000 crore of the subsidy bill or around half of the total revenue loss of the three OMCs on fuel sales during fiscal first half.
ONGC and Oil India Ltd made good one-third of the revenue loss.