Govt to pay state fuel retailers $5.5 bn oil subsidy
Quotes

Govt to pay state fuel retailers $5.5 bn oil subsidy

Last Updated: Friday, November 9, 2012, 09:42
 
 Comment 0
 
Govt to pay state fuel retailers $5.5 bn oil subsidy
Zeebiz Bureau

New Delhi: India will pay 300 billion rupees to state-owned fuel retailers forced to sell at cheaper government-set rates in the first half of next year, as per a news wire.

The payout by the finance ministry, nearly 46 percent less than the 554 billion rupees the oil ministry had been seeking, will be released after parliamentary approval is granted, the wire quoting sources said.

The three fuel retailers received the letter from the finance ministry on Thursday morning, the sources said.

IOC, the largest fuel retailer, will receive a government subsidy of about 161 billion rupees, while HPCL and BPCL's share will be about 66.7 billion rupees and 72 billion rupees respectively, they said.

The government fixes retail prices of liquefied petroleum gas, kerosene and diesel to protect the poor, leading to revenue losses at state-run Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.

The finance ministry pays cash subsidies to state oil retailers while state-run upstream companies - Oil and Natural Gas Corp, Oil India Ltd and GAIL (India) - sell crude oil and associated products at a discount.

India raised the price of diesel in mid-September, after a gap of more than a year, and capped annual sales of subsidised cooking gas cylinders to six per household.

With Agency Inputs



First Published: Friday, November 9, 2012, 09:42


Comments


comments powered by Disqus
G20 Summit 2014
G20 Summit 2014
2014`s Top People in Business: Fortune
2014`s Top People in Business: Fortune
World Bank`s Top 10 Places for Business
World Bank`s Top 10 Places for Business
India`s top ten billionaires
India`s top ten billionaires
Top 10 billionaire cities- In Pics
Top 10 billionaire cities- In Pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved