Oil companies have reason to cheer. According to a proposal with the finance ministry, the government and the oil companies are likely to share the LPG subsidy burden 50:50, sources say. However, nothing has been finalised as yet.
This is a proposal that has been sent from the oil ministry to the finance ministry.
A decision to this effect was taken on October 22 at the PMO and was supposed to be applicable from November 15 this year to March 31, 2015.
However, the oil ministry at a later date will decide ONGC, OIL and GAIL's ratio as far as the LPG subsidy goes.
Taking this forward, sources say the PMO has already agreed to share the subsidy burden 50:50 and the oil ministry is now arguing that the same rationale should be applied for diesel and kerosene.
Companies incurred diesel under-recoveries to the tune of Rs 10,821 crore till the deregulation decision.
The proposed cess paid by ONGC and OIL from pre-NELP blocks may also be a part of subsidies, according to sources.
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