Oil ministry seeks USD 7.88b extra cash compensation

The oil ministry has sought an additional cash compensation of Rs 40,000 crore from the finance ministry to partially cover revenue losses of state-run companies that sell diesel, kerosene, and cooking gas at state-set subsidised rates, the oil secretary said on Wednesday.

GC Chaturvedi said the oil ministry has also sought Rs 5,000 crore as compensation for revenue losses incurred on retail sales of petrol during the current fiscal year to March. Despite being deregulated, petrol prices have not been raised since December.

The finance ministry has so far agreed to given a cash subsidy of Rs 45,000 crore to state-run oil companies.