The report stated that the oil ministry has sought compensation of Rs 28,000 crore, but the finance ministry is agreeing to a Rs 20,000 crore package
The government of India plans to pay about Rs 20,000 crore to state-run fuel retailers to compensate them for losses in the quarter gone by and keep cooking gas prices in check, news agency Bloomberg reported. The report stated that the oil ministry has sought compensation of Rs 28,000 crore, but the finance ministry is agreeing to a Rs 20,000 crore package.
The talks are at an advanced stage, but a final decision is yet to be taken, Bloomberg quoted people aware of the development. Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, the three state-run retailers, together supply 90 per cent of India’s petroleum fuels. The three retailers posted their worst quarterly losses in this fiscal on the back of soaring international crude prices.
India imports about half of its liquefied petroleum gas, generally used as cooking fuel. The price of the Saudi contract price, the import benchmark for LPG in India, has increased 303 per cent in the past two years, while the retail price in Delhi was increased by 28 per cent, India’s Oil Minister Hardeep Singh Puri said on 9 September while speaking at an industry forum.