Oil Marketing Companies to Get Rs 11,000 Crore on Subsidy in Q1
Government will pay fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) Rs 11,000 crore in subsidy for the first quarter.
Fuel retailers sell diesel, domestic LPG and kerosene at government controlled rates which are below market price. The loss they thus incur is made good through cash subsidy from the government and dole from upstream firms like ONGC.
"For April-June the government has sanctioned Rs 11,000 crore subsidy," an official said here.
Of this, IOC will get Rs 6,076 crore, BPCL Rs 2,407 crore and HPCL Rs 2,517 crore.
During April-June, the three fuel retailers cumulatively lost Rs 28,690.74 crore on the fuel. Of this, the upstream firms ONGC, Oil India Ltd (OIL) and GAIL have been asked to meet Rs 15,546.65 crore or 54 per cent of the under-recovery or revenue loss.
After accounting for government cash subsidy, fuel retailers are still left with about Rs 2,145 crore of unmet losses.
Of the upstream share, ONGC has been asked to chip in Rs 13,200.10 crore. This is 4.5 per cent higher than Rs 12,622 crore it had paid in first quarter of previous fiscal, he said.
OIL has been asked to provide Rs 1,846.55 crore while the share of gas utility GAIL has been fixed at Rs 500 crore.
The official said out of the upstream dole, IOC will get Rs 8,107.21 crore, BPCL Rs 3,830.56 crore and HPCL Rs 3,608.88 crore.
Of the Rs 28,690.74 crore revenue loss in April-June, fuel retailers lost Rs 12,129 crore on domestic LPG, Rs 9,037 crore on diesel and Rs 7,524 crore on kerosene sold through PDS.
Oil firms are currently losing Rs 1.33 a litre on diesel, Rs 32.98 on PDS kerosene and Rs 447.87 (rpt Rs 447.87) on domestic LPG, he said, adding at the current rate the three firms are likely to end the fiscal with an under-recovery of Rs 91,665 crore.
IOC lost Rs 15,328.34 crore on sale of the three products in Q1, HPCL Rs 6,620.01 crore and BPCL Rs 6,742.39 crore.
Last fiscal, oil firms had lost Rs 1,39,869 crore on sale of diesel, PDS kerosene and domestic LPG.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.
-
Why Amazon And Flipkart Are Struggling To Beat Meesho In India's Smaller Cities
With 274 million users and lowest-cost logistics, Meesho is defending its value commerce crown against giants like Amazon and Flipkart.
