The Union government will pay Rs 25,000 crore additional cash subsidy to the government-owned fuel retailers to cover for the revenue they lost on selling auto and cooking fuel below cost this fiscal. The Finance Ministry has so far provided Rs 55,000 crore to Indian Oil Corporation (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) to cover for part of the revenue they lost on selling diesel, domestic LPG and kerosene at government controlled rates which are below the cost.
Another Rs 25,000 crore is likely to come next month, Oil Secretary Vivek Rae said in Delhi. The three firms are together projected to end the 2012—13 fiscal with a under—recovery or revenue loss of Rs 161,343 crore on sale of diesel and cooking fuel.
Of this, about Rs 60,000 crore is to be made good by upstream firm ONGC. After accounting for the Rs 25,000 crore expected, the total government cash subsidy would come to Rs 80,000 crore. There would still be Rs 21,000 crore—odd uncovered under—recovery which will be carried forward in the next fiscal, he said.
Union Oil Minister M Veerappa Moily said at the National Editors’ Conference that the government is committed to making available essential fuels, particularly cooking fuels to the common man at affordable prices.