Petroleum and Natural Gas Ministry has petitioned the Finance Ministry to provide a Rs. 40,000 crore in cash subsidy for the current fiscal to compensate the oil marketing companies (OMCs) for losses incurred on account of sale of kerosene, diesel and LPG at subsidised prices.
Petroleum Secretary, G.C. Chaturvedi said OMCs are projected to lose close to Rs. 1,37,524 crore on selling diesel, domestic LPG and kerosene in the current fiscal. "The Finance Ministry has provided Rs. 45,000 crore as cash compensation out of the Rs. 97,313 crore OMCs lost in first three quarters. Upstream oil firms have provided another Rs. 37,000 crore. For the full year, share of upstream firms like ONGC is likely to be about Rs. 53,000 crore and we want the balance Rs. 40,000 crore (Rs. 1,37,524 crore minus Rs. 45,000 crore already received in cash subsidy and Rs. 53,000 crore from upstream companies) to be provided by the Ministry,’’ he added.
The Ministry has separately asked for an additional Rs. 5,000 crore in cash subsidies to compensate retailers for losses on petrol sales. Oil firms need to raise petrol price by Rs. 7.72 a litre, including taxes as rates have not been revised since December 2011.
Asked when the price of petrol and diesel are likely to be revised, Petroleum and Natural Gas Minister, Jaipal Reddy said: "You are asking me to tell what I do not know about. The rise in international oil prices is a matter of concern. But before taking a decision, we have to consider political factors,’’ Mr. Reddy said.