With the approval of an additional Rs 9000 crore, the government has sanctioned a total of Rs 17,772 crore of cash subsidy to fuel retailers for compensating partial portion of their losses incurred during the sale of diesel and cooking fuels for September quarter. The three retailers, Indian Oil Corporation (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum Corp (BPCL) cumulatively had lost some Rs 35,328 crore in revenues on selling diesel, cooking gas (LPG) and kerosene at government controlled rates in July-September quarter.
This sanctioned amount reportedly is way higher than the earlier amount of subsidy that was being considered for these retailers. The Finance Ministry on Wednesday had already sent a letter approving Rs 8,772 crore subsidy for Indian Oil Corporation (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL).
Further, this amount is also way higher than the one sanctioned in the previous quarter, given that the Ministry had provided Rs 8,000 crore subsidy to cover for 31% of the Rs 25,579 crore losses on diesel and cooking fuel sales in April-June quarter.
However, even after accounting for upstream contributions of Rs 15,303.84 crore in Q1 and Rs 16,729.74 crore for Q2 and subsidy of Rs 25,772 crore, fuel retailers are still left with unmet losses to the tune of Rs 3101.42 crore. In April-September period, the three retailers together lost some Rs 60,907 crore in revenues on diesel, LPG and kerosene sales.
This sanctioned amount reportedly is way higher than the earlier amount of subsidy that was being considered for these retailers. The Finance Ministry on Wednesday had already sent a letter approving Rs 8,772 crore subsidy for Indian Oil Corporation (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL).
Further, this amount is also way higher than the one sanctioned in the previous quarter, given that the Ministry had provided Rs 8,000 crore subsidy to cover for 31% of the Rs 25,579 crore losses on diesel and cooking fuel sales in April-June quarter.
However, even after accounting for upstream contributions of Rs 15,303.84 crore in Q1 and Rs 16,729.74 crore for Q2 and subsidy of Rs 25,772 crore, fuel retailers are still left with unmet losses to the tune of Rs 3101.42 crore. In April-September period, the three retailers together lost some Rs 60,907 crore in revenues on diesel, LPG and kerosene sales.
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