ONGC to pay Rs 852 cr for subsidising petrol, diesel in Jan-Mar

Oil and Natural Gas Corporation (ONGC) will pay Rs 852 crore for subsidising petrol and diesel during January-March quarter but state gas utility GAIL India has been spared from the subsidy burden.

The government yesterday asked ONGC and Oil India (OIL) to pay Rs 943 crore by way of discounts on crude oil they sell to fuel retailers Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum, a senior Oil Ministry official said.

In 2008-09, the government did not allow the three retailers to raise petrol, diesel, domestic LPG and kerosene price in line with rise in cost and compensated them through a combination of oil bonds and upstream assistance. "GAIL has been spared from the subsidy burden," he said.

ONGC, GAIL and OIL had paid Rs 32,000 crore to subsidise fuel in April-December period. For this period, the government had issued Rs 60,985 crore worth of oil bonds.

"The final audited revenue loss (on sale of petrol, diesel, domestic LPG and kerosene) for 2008-09 is Rs 1,03,292 crore. There remained unmet losses which have now been met through more oil bonds and upstream assistance," he said.

Earlier this week, the government had approved issue of Rs 10,306 crore worth of more oil bonds. IOC will get Rs 6,207 crore, BPCL Rs 2,065 crore and HPCL Rs 2,034 crore. ONGC had in April-December period paid Rs 27,370 crore towards subsidising fuel.