Oilmin seeks R49,000-cr cash subsidy

Written by Reuters | New Delhi | Updated: May 18 2012, 07:24am hrs
The oil ministry has sought cash compensation of R49,000 crore from the finance ministry to compensate state fuel retailers for selling fuels at government-set cheaper rates in the Jan-March quarter, an oil ministry source said on Thursday.

We hope to get it by next week after the Budget session as the companies have factored in the money in their Q4 results, the source said.

The government fixes retail prices of LPG, kerosene and diesel to protect the poor, leading to revenue losses at Indian Oil, Bharat Petroleum and Hindustan Petroleum. The oil ministry had earlier sought an additional subsidy of R42,000 crore from the government for the six months ending March 2012.