Business Standard

India to pay state fuel retailers $5.5 bln oil subsidy - sources

INDIA-OIL-SUBSIDY:India to pay state fuel retailers $5.5 bln oil subsidy - sources

Reuters  |  NEW DELHI  

will pay 300 billion rupees to state-owned fuel retailers forced to sell at cheaper government-set rates in the first half of the year, said three sources who saw the finance ministry's confirmation letter.

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

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

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

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.

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 of about 161 billion rupees, while and BPCL's share will be about 66.7 billion rupees and 72 billion rupees respectively, they said.

RECOMMENDED FOR YOU

India to pay state fuel retailers $5.5 bln oil subsidy - sources

INDIA-OIL-SUBSIDY:India to pay state fuel retailers $5.5 bln oil subsidy - sources

India will pay 300 billion rupees to state-owned fuel retailers forced to sell at cheaper government-set rates in the first half of the year, said three sources who saw the finance ministry's confirmation letter.

will pay 300 billion rupees to state-owned fuel retailers forced to sell at cheaper government-set rates in the first half of the year, said three sources who saw the finance ministry's confirmation letter.

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

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

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

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.

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 of about 161 billion rupees, while and BPCL's share will be about 66.7 billion rupees and 72 billion rupees respectively, they said.

image
Business Standard
177 22

India to pay state fuel retailers $5.5 bln oil subsidy - sources

INDIA-OIL-SUBSIDY:India to pay state fuel retailers $5.5 bln oil subsidy - sources

will pay 300 billion rupees to state-owned fuel retailers forced to sell at cheaper government-set rates in the first half of the year, said three sources who saw the finance ministry's confirmation letter.

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

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

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

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.

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 of about 161 billion rupees, while and BPCL's share will be about 66.7 billion rupees and 72 billion rupees respectively, they said.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard