Govt to compensate OMCs in December

Govt to compensate OMCs in December

State-owned oil marketing companies (OMCs) will get compensation from the government in December after supplementary grant for demand is approved in the winter session of Parliament, a finance ministry official said on Monday.

“The oil subsidy provisioned in the Budget has already been paid to the OMCs. We have to wait for Parliament to approve supplementary, before dispersing more funds,” the official said.

The OMCs have been seeking compensation for Rs 80,000 crore worth of under recoveries in the first-half (April-September) of the current financial year for selling diesel, kerosene and cooking gas, below international prices.

The Finance Ministry has, however, not accepted the contention of the OMCs and asked CAG to take a closer look at the figures provided by the companies. Meanwhile, India’s fuel consumption declined by 4.23 per cent on month indicating poor industrial activities, Petroleum Ministry data showed on Monday.

India’s fuel consumption in September stood at 11.53 million tonne, down 4.23 per cent on month indicating moderating industrial activity and decline in sale of commercial and passenger vehicles.

The country’s fuel consumption in August was 12.04 million tonne. The September diesel sale was down 2.17 per cent and stood at 4.94 million tonne on poor demand from farmers for irrigation purposes due to good monsoon rains during the month.