Petroleum ministry seeks Rs21 crore bonds to offset subsides
11 Dec 2009
The petroleum ministry has sought oil bonds worth Rs20,872 crore (Rs 208.72 billion) to compensate state-owned fuel retailers for the losses incurred on selling domestic LPG and kerosene below cost this fiscal, minister of state for petroleum and natural gas Jitin Prasada told the Lok Sabha on Thursday. But he added that the finance ministry is yet to approve the bonds.
''The Petroleum ministry has made a request to the ministry of finance for sanction of oil bonds of this amount,'' he said in a written reply.
"The finance ministry has informed that the compensation to oil companies has not been covered in the first supplementary demands for grants (or additional spending) which has been presented in Parliament on 8 December," he said.
Indian Oil, Bharat Petroleum and Hindustan Petroleum lost Rs11,853 crore in revenues on not being allowed to raise LPG and kerosene prices in line with the cost during April- September. An additional Rs 9,019 crore (Rs 90.19 billion) revenue loss is estimated for third quarter ending 31 December.
The government had this year decided to make good all of the revenue lost on sale of domestic LPG and kerosene through issue of oil bonds, while the losses on petrol and diesel were to be met by upstream firms like OIL and Natural Gas Corporation.
The three firms lose Rs3.10 a litre on petrol, Rs2.55 per litre on diesel, Rs17.30 a litre on kerosene and Rs241.03 per LPG cylinder, he said. They are projected to lose about Rs45,800 crore in revenues in the full year.
.webp)
.webp)
