The Finance Ministry on Wednesday agreed to give an additional Rs.14,000 crore to oil marketing companies (OMCs) —Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation — to make up for the losses incurred on sale of fuel and cooking gas at subsidised rates.
The OMCs have lost Rs.31,621 crore on selling domestic LPG and kerosene below cost in 2009-10. Of this, the Finance Ministry had previously released Rs.12,000 crore in cash and on Wednesday agreed to give an additional Rs.14,000 crore.
“We had sought Rs.19,620 crore in compensation but the Finance Ministry has agreed to give Rs.14,000 crore,'' Petroleum and Natural Gas Minister Murli Deora said.
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During the day, Petroleum Secretary S. Sundareshan met Expenditure Secretary Sushma Nath seeking Rs.19,620.95 crore to fully compensate oil marketing companies' revenue loss on PDS kerosene and domestic LPG in 2009-10.
The three OMCs lost Rs.46,051 crore on selling petrol, diesel, domestic LPG and PDS kerosene below imported cost in 2009-10.
An Empowered Group of Minister headed by Finance Minister Pranab Mukherjee is likely to meet next week to look at freeing the auto fuel prices and ways of meeting the balance revenue loss.
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