The Hindu Business Line : Rs 17,000 cr: ONGC’s subsidy payout for ’07-08

Loss estimation
The OMCs — IOC, BPCL and HPCL — are estimated to lose Rs 69,753 crore for the fiscal on sale of petrol, diesel, LPG, and PDS kerosene.

Our Bureau

New Delhi, Jan. 2 ONGC’s subsidy payout in the current financial year (2007-08) is expected to be Rs 17,000 crore. Speaking to newspersons at the sidelines of a conference here, Mr R.S. Sharma, Chairman and Managing Director, ONGC, said, “During the first half of 2007-08, we paid Rs 7,448 crore subsidy. For the full year, we expect the payout to cross Rs 17,000 crore.

“The high global crude oil prices are likely to increase the revenue loss of oil marketing companies (OMCs) and this, in turn, will increase our subsidy burden,” he added. In 2006-07, ONGC’s subsidy payout stood at Rs 17,025 crore.

As per the subsidy sharing mechanism for the upstream companies, ONGC, Oil India, GAIL (India) bear almost one-third of the under realisation on sale of petrol, diesel, LPG and kerosene suffered by the state-owned OMCs due to high crude prices.

He said that ONGC sold crude at a gross rate of $87-88 per barrel to the State-owned refiners in December. “In December, our gross realisation was higher at $87-88 per barrel because of high crude oil prices,” he said. In July-September, ONGC’s gross realisation on oil sale was about $77 a barrel.

The OMCs — Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation — are estimated to lose Rs 69,753 crore for the fiscal on sale of petrol, diesel, LPG, and PDS kerosene.

The revenue loss suffered on sale of petrol stood at Rs 9.20 per litre, diesel Rs 10.95 per litre, LPG Rs 331.35 per cylinder and kerosene Rs 19.90 per litre.

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