Union Minister of State for Petroleum & Natural Gas Panabaaka Lakshmi on August 27 told the Rajya Sabha that State-run oil marketing companies have reported a combined loss of Rs 4,403 crore in April-June quarter of the current financial year. But, the three marketing firms - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp managed 'meager profits' in previous financial years only after factoring in cash compensations provided by the government and discount on crude oil offered by state-run upstream companies, she said in a statement in the Rajya Sabha.
The Minister said that without compensation for under-recoveries (revenue losses), all OMCs would have declared huge losses. The government controls retail prices of diesel, kerosene and cooking gas and pays cash compensations to the three marketing companies for selling fuels below market rates.
The government continues to modulate retail selling prices of diesel, kerosene and cooking gas to insulate the common man from the impact of rise in international oil prices and the domestic inflationary conditions, she added.