Oil Ministry seeks $1.9 billion subsidy for April-June: report

The Oil Ministry has sought Rs 11,451 crore cash subsidy from the Finance Ministry to partly offset the revenue losses of state retailers for selling fuel at below-market prices in April-June, an Oil Ministry source said.

The source said state-run oil and gas producers have been asked to give a discount of Rs 14,906 crore on the sale of crude oil and refined products to state-owned oil marketing companies for the April-June quarter.

Fuel retailers Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp sell diesel, kerosene and cooking gas at subsidised rates to protect the poor and tame inflation.

"Because of the falling rupee and firming global crude oil prices, we have asked the Finance Ministry to enhance the budgetary provision for fuel subsidies to Rs 63,000 crore for this fiscal year," the source said.

Copyright: Thomson Reuters 2013