Govt may exempt ONGC, OIL from paying subsidy in Q4

Oil and Natural Gas Corp (ONGC ) and Oil India (OIL), the state-run oil producers, may be exempt from paying subsidies to fuel retailers in the March quarter, a source familiar with the matter said on Friday.

The government regulates retail prices of liquefied petroleum gas (LPG) and kerosene to keep prices under check, with producers like ONGC and OIL selling crude and related products to fuel retailers at a hefty discount to partly compensate for the losses.

In addition, the oil ministry has asked the Ministry of Finance for a Rs 5,000 crore (US $798.7 million) subsidy for the fourth quarter ending March 31, 2015, said the government source, who asked not to be named as he is not authorised to speak to the media.

(Reuters)