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Govt to release compensation for state-run OMCs

Govt to release compensation for state-run OMCs
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Media reports indicate that the government may release about Rs 70 billion in six tranches of an equivalent amount every Tuesday to state oil marketing companies (OMCs) for under-recoveries during January-March period.

State-run OMCs incur under-recoveries or revenue loss as they sell diesel, kerosene and cooking gas at subsidised price. The government compensates these firms for the under-recoveries every year.

The Rs 70 billion is said to be the first tranche of the cash subsidy payout by the government.

Last month, the finance ministry approved Rs 450 billion in subsidy payouts to oil retailers.

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