ONGC fuel subsidy bill up 15 per cent in Q2

ONGC fuel subsidy bill up 15 per cent in Q2

Mumbai: State-owned Oil and Natural Gas Corporation’s fuel subsidy bill will increase by nearly 15% to Rs3,019 crore in the second quarter this fiscal.

PSU fuel retailers Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) together lost about Rs11,295 crore in revenues on selling diesel, domestic LPG and kerosene below cost of production in July-September quarter, an official said here.

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

As per this subsidy sharing formula, ONGC will chip in with Rs3,019 crore by way of discount on crude oil it sells to IOC, BPCL and HPCL.

The subsidy outgo of ONGC will be Rs2,630 crore higher than in the second quarter of last fiscal.

The official said OIL will pay Rs399 crore in subsidy during Q2 of this fiscal and GAIL Rs346 crore.

Of the ,765 crore upstream subsidy contribution, IOC will get 2,135 crore, HPCL 808 crore and BPCL 21 crore.

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

IOC, BPCL and HPCL currently lose Rs2.01 per litre on diesel, Rs15.52 per litre on kerosene and Rs188.47 per cylinder on LPG.