The Petroleum Ministry has sought cash subsidy of Rs.49,872 crore from the Finance Ministry to compensate state-owned oil companies for selling fuel at government-controlled rates in the January-March quarter.
Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together lost Rs.1.48 lakh crore on selling diesel, domestic LPG and kerosene at rates lower than cost in 2011-12, an Oil Ministry official said here.
Out of this, the government had provided Rs.45,000 crore in cash subsidy during April-December. Upstream oil firms such as Oil and Natural Gas Corp (ONGC) would provide Rs.53,359 crore for the fiscal, leaving an unmet gap of Rs.49,872 crore.
“We hope to hear from the Finance Ministry sometime next week,” he said.
State-owned oil firms lost Rs.81,192 crore on sale of diesel during 2011-12, Rs.27,352 crore on kerosene and Rs.29,997 crore on domestic LPG.
Besides, they lost Rs.4,890 crore on sale of petrol, a commodity which was decontrolled in June, 2010, but rates had not moved in tandem with cost due to political considerations.
The official said the oil marketing companies incurred an interest payout of Rs.4,800 crore due to delay in payment of cash subsidy by the government.
Of the Rs.1.48 lakh crore revenue loss, IOC's share was Rs.80,305 crore, HPCL Rs.32,771 crore and BPCL Rs.35,155 crore.