FinMin to verify OMCs' losses
"The Finance Ministry in consultation with the Oil Ministry is conducting a study on the under-recoveries of the OMCs. The report is likely by November 15," sadi a senior government official.
The government compensates three OMCs -- Indian Oil, Hindustan Petroleum and Bharat Petroleum -- for selling diesel, cooking gas (LPG) and kerosene for under-recoveries, which is the difference between the cost price and selling price.
"We will decide on the quantum of subsidy to OMCs based on this study," the official added.
Last week, Petroleum Minister Veerappa Moily had said that his ministry will seek over Rs 1,00,000 crore from the Finance Ministry this fiscal towards fuel subsidy.
The Finance Ministry has already paid Rs 43,580 crore, earmarked in the budget for 2012-13, to oil companies as fuel subsidy to set off dues for the previous fiscal.
State-owned fuel retailers are likely to end the fiscal with a revenue loss of over Rs 1,63,000 crore. Of this, about Rs 60,000 crore will come from upstream companies Oil and Natural Gas Corp (ONGC), Oil India Ltd and GAIL India.
State retailers currently lose Rs 9.82 per litre on diesel, Rs 33.93 a litre on kerosene and Rs 468.50 per 14.2-kg subsidised LPG cylinder. They currently are losing Rs 433 crore per day.
Upstream firms ONGC, OIL and GAIL share a part
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