ONGC, India's largest oil and gas producer, today reported a three per cent rise in second quarter net profit even after paying record fuel subisdy. Net profit in the July-September quarter rose to Rs 6,063.86 crore compared to Rs 5,896.57 crore in the same period a year ago, the company said in a filing to the stock exchanges.
Oil and Natural Gas Corp (ONGC) paid Rs 13,796 crore to subusidise diesel, cooking gas (LPG) and kerosene in the second quarter as opposed to Rs 12,330 crore payout in the same period last fiscal.
Upstream oil producers like ONGC give discounts on crude oil they sell to refiners to cover for a part of the losses incurred on sale of diesel and cooking fuel rates lower than cost of production.
ONGC said its net profit would have been higher by Rs 7,621 crore if it had not paid the fuel subsidy.
Turnover increased to Rs 22,414.67 crore in July-September from Rs 19,885.09 crore a year earlier.