Since global oil prices have fallen below USD 50 per barrel, Oil Ministry wants to exempt Oil and Natural Gas Corp (ONGC) and OIL from payment of subsidy during the remainder of the current fiscal.
Sources said the ministry has written to the finance ministry seeking Rs 22,101 crore for covering most of the revenue loss on LPG and kerosene sale during October-December.
This is on top of Rs 17,000 crore in fuel subsidy that the finance ministry has already given in the first half.
The ministry projects that the government will earn Rs 75,944 crore on excise duty on petrol and diesel and even after paying for Rs 39,101 crore subsidy (Rs 17,000 crore of first half and Rs 22,101 crore in second half), it will be left with Rs 36,843 crore.
It has put gross under-recoveries or revenue loss on sale of diesel, LPG and kerosene during the current fiscal at Rs 74,773 crore. Of this, Rs 51,109.53 crore has already been accounted for in the first half, they said.