The Union Govt. exempts ONGC, Oil India from payment of fuel subsidy in the fourth Qurter

Highlights:

  • The government has exempted oil producers ONGC and Oil India from payment of fuel subsidy in the fourth quarter.
  • Meanwhile, the finance ministry has agreed to compensate the revenue loss on fuel sales.
  • The govt. will pay Rs 5,324 crore in fuel subsidy for the January-March quarter.
  • The government regulates price of cooking fuels LPG and kerosene to cushion consumers from high international prices.
  • The difference between the cost and the retail selling price is borne by the government by way of cash subsidy and upstream producers like ONGC.
  • Under-recoveries, or revenue retailer's loss on selling fuel below cost, of Rs 67,091 crore in first nine months of the fiscal were fully accounted for by the subsidy support and dole out from upstream firms like ONGC.