State-owned Oil and Natural Gas Corp (ONGC) has paid a phenomenal Rs 105,246 crore since 2003-04 to subsidise auto and cooking fuels.
Since 2003-04, ONGC has been subsidising petrol, diesel, domestic LPG and kerosene by giving discounts on crude oil (raw material for producing fuel) it sells to state retailers.
The company "has provided a total assistance of Rs 96,711 crore and Rs 8,535 crore during the period between 2003-04 and 2009-10, and April-September 2010 respectively, through price discounts to oil marketing companies", Minister of State for Petroleum and Natural Gas Jitin Prasada said in a written reply to the Lok Sabha.
During July-September quater, ONGC sold crude at $62.75 a barrel after giving subsidy discounts. Its gross realisation on crude oil sold (pre-subsidy discount) was $79.21 per barrel.
State retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp sold fuel below imported cost on government dictat aimed at controlling inflation.
Petrol price has been freed from government control since June 26 but other three products continue to be subsidised.
The retailers now lose Rs 3.85 per litre on diesel, Rs 16.50 per litre on kerosene and Rs 209.94 per 14.2-kg domestic LPG cylinder.
During April-September, 2010, oil marketing companies lost Rs 31,367 crore in revenue on selling fuel below cost.
Of this, Rs 10,456 crore was made up by upstream firms ONGC, Oil India and GAIL India through price discounts on crude oil and products. Besides, Ministry of Finance has confirmed a budgetary support of Rs 13,000 crore.
The budgetary support was less than the Rs 15,683.30 crore that the oil ministry had sought to cover for the public sector oil companies' revenue losses in the first half of the current fiscal.
For the full fiscal, IOC, BPCL and HPCL are projected to lose Rs 61,634 crore in revenues on fuel sales.
