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Petroleum Ministry seeks Rs 61,000 crore to balance oil firm’s losses

11 Oct 2012 Evaluate

The Petroleum Ministry has sought nearly Rs 61,000 crore from the Finance Ministry to balance the losses added by public sector oil marketing companies (OMCs) for the 1st two quarters of the present fiscal. The 3 OMCs - IOC, BPCL, and HPCL added total losses of Rs 89,000 crore on selling petroleum products at subsidized rates during the first 6 months of the fiscal.

Oil India, ONGC, and GAIL (India) contributions will be about 28,000 crore from these upstream companies. Upstream companies had bore the subsidy burden of Rs 14,000 crore in the 1st quarter, and a similar amount is expected in the 2nd quarter. In the 1st quarter under recovery was Rs 47,000 crore while in the 2nd quarter it stood at Rs 42,000 crore.

The Finance Ministry has issued letters to all ministries in quest of cash in 1st supplementary demand for grant which is likely in the upcoming winter session.

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