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Govt's extra dole gives OMCs buffer against price rise

Sparring over subsidy numbers has become passe, with the Union government providing more than the required subsidy on cooking gas to oil marketing companies (OMCs), giving them a cushion against future price rise. Indian Oil Corporation , the largest marketer of petroleum products in the country, alone got Rs 700 crore extra in the first quarter. The extra amount is being collected in a pool account. The government has fixed its subsidy payout to OMCs for kerosene sales at Rs 12 a litre and LPG sales at Rs 18 a kg (Rs 255 per 14.2 kg domestic gas cylinder). "We are getting LPG ...