New Delhi: The petroleum ministry has sought 400 bln rupees additional compensation from the finance ministry for revenue losses incurred by state-owned oil marketing companies on sale of diesel, kerosene and domestic liquefied petroleum gas at government-determined prices, petroleum secretary G.C. Chaturvedi said on Wednesday.
The petroleum ministry has also requested for an additional 50 bln rupees to compensate oil retailers for their losses on sale of petrol during 2011-12 (Apr-Mar).
Even though as per an ad hoc mechanism, government and upstream oil companies partly share oil retailers' revenue losses only for subsidised fuels, the ministry has now asked for an additional subsidy for petrol revenue losses as the companies were not able to hike prices of the auto fuel since November, in spite of its prices being deregulated since Jun 2010.
The three state owned oil retailers--Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp--are currently incurring a revenue loss of 6.43 rupees per litre on sale of petrol.