The Government of India sanctioned a sum of Rs.8772 crores to Indian oil retailing companies who sustained loss in the quarter ending 30th September on diesel, cooking gas and Kerosene due to the sale at below cost.

Indian Oil Corporation, Hindustan petroleum Corporation and Bharat Petroleum Corporation have put together had to bear a loss to the tune of Rs.35,328 crores on diesel, LPG and Kerosene as they have sold at the Government prescribed rates during the three months from July to September 2013.

The amount of Rs.8772 crores is less than 25% of the loss for which the Finance Ministry sent letters to the oil retailing companies on Wednesday.

The above oil companies have sustained a loss of Rs.25579 crores during the quarter ending 30th June out of which the Government gave a subsidy of 31% to the tune of Rs.8000 crores.

That means the companies have lost revenue of Rs. 60907 for half year ending 30th September.  After the subsidy received from the Government and after the upstream contributions to the tune of Rs.32033 crores received from ONGC, GAIL and OIL for the two quarters, the retailing companies have still a loss of Rs.12100 crores uncovered.

-SriJa