Formula eludes meet on state-owned fuel retailers

The meeting held between the Finance and Petroleum Ministries to discuss the compensation formulae for the state-owned oil retailing firms ended without “any solution,” official sources said.  It is learnt that state-owned OMCs might get Rs 12,000 crore  from the Centre as subsidies to offset some of the losses being incurred by them. The finance ministry sent a letter to the oil ministry saying Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp will be paid Rs 12,020 crore in cash to cover for their losses on sale of domestic LPG and kerosene in 2009-10.

The petroleum ministry is understood to be pleading for giving financial relief to the tune of Rs 30,000 crore. At the meeting it was suggested that both the ministries would work out ways and means to minimise losses of OMCs. Sources said they will accept the cash offered as “part-payment”,

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