New Delhi: Indian Oil Corp (IOC) will get Rs. 8,107 crore from upstream firms in fuel subsidy support for the first quarter, while Hindustan Petroleum Corp Ltd (HPCL) will get Rs. 3,608.88 crore.
The Oil Ministry has fixed the subsidy payout by upstream firms such as Oil and Natural Gas Corp (ONGC) and Oil India Ltd at Rs. 15,546.65 crore for the April-June quarter.
Of this, ONGC will pay Rs. 13,200.10 crore and another Rs. 1,846.55 crore will come from OIL. State gas utility GAIL will pay Rs. 500 crore, official sources said.
Fuel retailers IOC, HPCL and Bharat Petroleum Corp Ltd (BPCL) sell diesel, domestic LPG and kerosene at Government controlled rates which are way below the cost. The losses they incur are compensated through a combination of Government cash subsidy and support from upstream firms.
For the April-June quarter, the Government has fixed the upstream payout at Rs. 15,546.65 crore.
Of this, IOC will get Rs. 8,107.21 crore, BPCL Rs. 3,830.56 crore and HPCL Rs. 3,608.88 crore, they said.