In an effort to lower discount burden of state-run Oil and Natural Gas Corp. (ONGC) and boost the explorer's profits, the central government is considering to rework subsidy sharing formula, union Petroleum Minister Dharmendra Pradhan said Wednesday.
The minister said this in a written reply in the Rajya Sabha.
The government deregulated diesel in October, but state-run companies continue to sell at a discount to oil marketers for them to retail kerosene and cooking gas below cost.
The government plans to sell 5 percent stake in ONGC worth about $2.5 billion as part of its divestment programme.
The decline in global crude oil prices coupled with gradual diesel rate hikes towards the fuel's full market-pricing has reflected well in the 2013-14 performance of ONGC.