"We have received a communication from the Ministry of Petroleum and Natural Gas detailing subsidy sharing formula for Q1 of the current fiscal. If crude oil prices are below USD 60 per barrel, we are not liable to pay any amount for under-recoveries.
     
"If oil prices are between USD 60-100 per barrel, we would have to pay 85 percent of the incremental rate over USD 60. And if oil price is over USD 100 per barrel, we would be
liable to 90 percent of the incremental rate we get over and above USD 60 in fuel subsidy," ONGC Chairman and Managing Director Dinesh K Sarraf said.
     
Sarraf said the formula notified earlier this week is only for the first quarter of current fiscal.At a press conference to mark one year of Modi Government, Expenditure Secretary Ratan Watal said, there were two subsidy lines -- one for kerosene, one for LPG.
     
While for LPG the government is paying subsidy directly into bank accounts of users, for kerosene a formula is being discussed, Watal said, adding Rs 22,000 crore has been provisioned in the Budget for fuel subsidy.

The Finance Ministry has sanctioned Rs 5,223 crore fuel subsidy for the January-March quarter to cover almost all of the revenue loss that the two retailers suffered on selling domestic cooking gas (LPG) and kerosene at government rates.

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