ONGC fuel subsidy bill up 21% in Q3

ONGC fuel subsidy bill up 21% in Q3

New Delhi: State-owned Oil and Natural Gas Corp’s (ONGC) fuel subsidy bill will increase by nearly 21% to about Rs4,222 crore in the third quarter this fiscal.

State fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) together lost about Rs15,750 crore in revenues on selling diesel, domestic LPG and kerosene below cost of production in October-December quarter, an official said here.

“Of this under recovery, upstream companies like ONGC, Oil India and Gail India will bear one-third," he said.

As per this subsidy sharing formula, ONGC will chip in with Rs4,222 crore by way of discount on crude oil it sells to IOC, BPCL and HPCL.

The subsidy outgo of ONGC in Q3 of last fiscal had stood at Rs3,487 crore.

The official said while OIL will pay Rs558 crore in subsidy during Q3 of this fiscal, GAIL will give Rs418 crore.

While, petrol price was freed from government control in June, state oil firms continue to sell diesel, domestic LPG and kerosene at government ruled prices which is substantially lower than cost of production.

IOC, BPCL and HPCL currently lose .80 per litre on diesel, 8.66 per litre on kerosene and 366 per 14.2-kg LPG cylinder.