- GAIL sets Jan deadline for firms to lift US LNGNatural gas price may skyrocket to $10, from $4.2 on C. Rangarajan formula implementation: GoldmanIndia's ONGC shuts down South Sudan oilfields, evacuates employeesAmid increasing violence, India shuts down South Sudan oilfields & evacuates employees
assured by the oil minister that efforts would be made to reduce the subsidy burden with approval of the finance ministry and the Cabinet,” said the ONGC official, who was part of recent deliberations.
The subsidy-sharing mechanism is ad hoc in nature with the contribution of upstream companies varying every year. However, since 2011-12 ONGC has been asked to provide a fixed $63 per barrel subsidy to downstream companies, a value that does not vary with the fluctuations in crude oil price or the size of the overall subsidy burden. The three PSU companies ONGC, OIL and GAIL compensate the oil retailers for selling diesel, kerosene and LPG at discounted prices. But GAIL has now been exempted by the government from contributing in the last two quarters of FY14 as it is not an upstream player.
The Parikh committee submitted its report in late October when it recommended continuing pricing petroleum products at the trade parity pricing route. It also suggested a hike in prices of diesel by Rs 5 a litre, kerosene by Rs 4 per litre and LPG by Rs 250 per cylinder, among other recommendations.