ONGC sees lower fuel subsidy burden

ONGC sees lower fuel subsidy burden
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First Published: Thu, Jul 02 2009. 09 49 AM IST
Updated: Thu, Jul 02 2009. 09 49 AM IST
Mumbai: India’s state-run Oil and Natural Gas Corp’s fuel subsidy burden for the current year will be significantly lower than the previous year, if the crude prices stay around the current level,chairman and managing director R. S. Sharma said on CNBC-TV18 on Thursday. “If the prices remain around $70 a barrel, surely the subsidy burden is going to be less,” Sharma said when asked if the recent fuel price hike would help ease the company’s subsidy burden.
Government unexpectedly raised petrol and diesel prices by as much as 10% on Wednesday, its first increase this year, passing some of oil’s rally into an economy just beginning to find its feet amid a global recession.
India’s government-controlled fuel pricing regime forces state-run producers such as ONGC to partially subsidise state oil marketing companies to sell products at low prices to consumers.
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First Published: Thu, Jul 02 2009. 09 49 AM IST