'Indian upstream companies to pay $11.4-bn fuel subsidy for FY14'

The government has ordered oil companies to provide $11.4 billion subsidy for FY14 to help cover losses of state retailers that sell fuels at cheaper rates - a jump of 12 per cent from the previous year, a source with knowledge of the matter said on Thursday.

State-run Oil and Natural Gas Corp, Oil India Ltd and GAIL (India) sell crude and related products at a discount to the retailers, who also get some cash subsidies from the government.

ONGC, OIL and GAIL will jointly cover about 48 per cent of the $23.82 billion revenue losses of the retailers in the financial year to March 2014.