Fuel subsidy News

ONGC and OIL, it said, have not contributed to fuel subsidies since June 2015, but have in previous years paid for over 40 per cent of the country's annual subsidy bill.

India's growth has been "impressive" in the recent years which makes room for tax broadening efforts by the government, according to a top IMF official.

Government has exempted state-owned ONGC and Oil India from payment of fuel subsidy in the third quarter ended December 31, as slump in oil prices dented their revenues.

The Finance Ministry likely to peg the notional value of crude oil price below USD 50 a barrel while computing the subsidy numbers and fiscal deficit in the Budget 2016-17.

Though two major thrusts like fuel subsidy reduction and capital expenditure compression have driven fiscal consolidation in recent years, hardly any progress has been made in improving revenue collection.

Indian Oil Corp (IOC) will get Rs 2,932 crore subsidy and Bharat Petroleum Corp Ltd (BPCL) Rs 2,291 crore for selling fuel below cost in Q4 of 2014-15, but Hindustan Petroleum Corp Ltd (HPCL) will not get any support.

The government has exempted oil producers ONGC and Oil India Ltd from payment of fuel subsidy in the fourth quarter after the finance ministry agreed to meet all of the revenue loss on fuel sales.

Oil Ministry has sought Rs 22,101 crore in fuel subsidy for the second half of current fiscal so as to almost exempt oil producers ONGC and Oil India Ltd from any payments.

The government plans to sell 5 percent stake in ONGC worth about $2.5 billion as part of its divestment programme.

The government is not considering exempting state-owned Oil and Natural Gas Corp (ONGC) from payment of fuel subsidy, Oil Minister Dharmendra Pradhan said Wednesday.

Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) had reported a revenue loss of about Rs 24,563 crore in the July-September quarter.

GAIL (India) Ltd, the nation's largest natural gas distributor, today reported 42 per cent jump in its September quarter net profit as it did not pay any fuel subsidy.

Fuel retailers sell diesel, domestic LPG and kerosene at government controlled rates which are below market price. The loss they thus incur is made good through cash subsidy from the government and dole from upstream firms like ONGC.

Indian Oil Corp (IOC) will get Rs 8,107 crore from upstream firms in fuel subsidy support for the first quarter while Hindustan Petroleum Corp Ltd (HPCL) will get Rs 3,608.88 crore.

The government plans to sell 42.77 crore shares, or five per cent of its stake in ONGC worth Rs 17,400 crore at current prices, this fiscal.

Rating agency Moody's expects the government to reduce its fuel subsidy bill through a gradual process that in turn will lead to higher product prices and prove credit positive for oil marketing companies.