Oil firms to give $1.14 bn in retail discount: Source
Oil firms to give $1.14 bln in retail discount - source
January 18, 2011 / 16:41 IST
State-run upstream firms are expected to give a total discount of Rs 5,198 crore ($1.14 billion) to retailers on fuel sales in the Oct-Dec 2010 quarter, up from a year ago, an industry source said on Tuesday.
Upstream companies and explorers -- Oil and Natural Gas Corp, Oil India Ltd and GAIL -- have to sell crude oil and products at a discount to retailers who must sell at government-capped prices.The source, who did not wish to be identified as a formal letter from the ministry has not been received by his firm, said ONGC's subsidy burden was about Rs 4,222 crore while OIL's share stood at about Rs 558 crore and that of GAIL at Rs 418 crore.ONGC's subsidy was Rs 3,497 crore in the third quarter of the fiscal year ending March 31, 2010. Crude prices have climbed in the past year and currently are near two-year highs close to USD 100 a barrel.GAIL confirmed it would pay Rs 418 crore as it reported quarterly results.India in June last year granted autonomy to state-run refiners to fix retail prices for petrol, while New Delhi continues to fix the prices of diesel, cooking gas and kerosene.($1 = 45.5 rupees) Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
