Rangarajan proposal to bring relief to ONGC
Prashant Mukherjee: New Delhi, Dec 26 2012, 03:03 IST
of the oil subsidy burden and said if the situation continues, its cash reserve — which stood at R12,000 crore at the starting of the year — would drop to R4,500 crore by the fiscal end. Between 2008-09 and 2011-12, the government reduced its share of under-recoveries from 69.02% to 46.24%, while the share of upstream companies increased from 30.98% to 38%.
The acceptance of the panel recommendations may benefit the oil explorers but it will certainly put consumers' pockets under strain. A $4 per unit increase in the price of gas will add another R35,000-40,000 crore to the Centre's fertiliser subsidy burden. If the gas price is increased to $8, electricity tariff for the consumer may go up by R1.6 per unit.
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