PSU fuel retailers IndianOil Corporation Ltd, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) together lost about Rs 11,295 crore in revenues on selling diesel, domestic LPG and kerosene below cost of production in July-September quarter, an official said here.
"Of this under recovery, upstream companies like ONGC, Oil India and Gail India will bear one-third," official added.As per this subsidy sharing formula, ONGC will chip in with Rs 3,019 crore by way of discount on crude oil it sells to IOC, BPCL and HPCL.The subsidy outgo of ONGC will be Rs 2,630 crore higher than in the second quarter of last fiscal.
The official said OIL will pay Rs 399 crore in subsidy during Q2 of this fiscal and GAIL Rs 346 crore.Of the Rs 3,765 crore upstream subsidy contribution, IOC will get Rs 2,135 crore, HPCL Rs 808 crore and BPCL Rs 821 crore.
While, petrol price was free from government control in June, state oil firms continue to sell diesel, domestic LPG and kerosene at govt dictated price which is substantially lower than cost of production.
IOC, BPCL and HPCL currently lose Rs 2.01 per litre on diesel, Rs 15.52 per litre on kerosene and Rs 188.47 per cylinder on LPG