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State-run oil firms pay Rs 150 bn as subsidy for June quarter

State-run oil firms pay Rs 150 bn as subsidy for June quarter
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The three state-run oil companies have paid Rs 15,000 crore as subsidy to public sector oil marketing companies (OMCs) for the Apr-Jun 2013 quarter.

Of the Rs 15,000 crore, Oil and Natural Gas Corporation (ONGC) paid around Rs 12,300 crore, Oil India Rs 2,000 crore, and GAIL Rs 700 crore.

It may be recalled that of the total under-recovery incurred by state-run OMCs, 40 percent is shared by the government and the remaining by companies like GAIL, ONGC and OIL.

Meanwhile, the government expects the under-recovery in the entire 2013-14 financial year to be Rs 1 lakh crore. But, industry sources expect under recoveries to be at Rs 1.28 lakh crore because of rupee depreciation.

The actual under-recovery would depend also on whether it is computed on trade parity or export parity pricing.

So, the government at this point in time believes that Rs 1 lakh crore would be the subsidy burden. Of this, GAIL, ONGC, OIL may pay Rs 60,000 crore, government may pay Rs 40,000 crore.

In 2012-13, upstream companies paid Rs 60,000 crore, government paid Rs 1 lakh crore. So, contribution by upstream companies last year was 38 percent.

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