Govt sets aside Rs 25,000 cr subsidy for oil PSUs

The government will pay Rs 25,000 crore additional cash subsidy to state-owned fuel retailers to make up for part of the revenue they lost on selling auto and cooking fuel below cost this financial year.

The finance ministry on February 7 had issued a comfort letter to Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corporation (HPCL) sanctioning Rs 25,000 crore for part of the revenue they lost on selling diesel, domestic LPG and kerosene below cost, official sources said.

Earlier, the government had released Rs 30,000 crore subsidy.

With the latest sanction, it has met about 44 per cent of the Rs 1,24,854 crore revenue the three firms together lost on selling auto and cooking fuel below cost during the April-December period this financial year.

In association with Mail Today