Oil ministry seeks Rs 400 billion additional subsidy to fuel retailers

The oil ministry has sought an additional Rs 400 billion in cash subsidies for this financial year through March to compensate fuel retailers for losses incurred on selling diesel and cooking fuels at state-set discounted prices, oil secretary G.C. Chaturvedi told today.

The ministry has separately asked for an additional Rs 50 billion in cash subsidies to compensate retailers for losses on gasoline sales.

Oil retailers are expected to incur losses of Rs 1.4 trillion on discounted diesel and cooking fuel sales this fiscal year.

The government has already issued Rs 450 billion in subsidies to the companies for the April-December period.

Chaturvedi said retailers also need to raise gasoline prices by Rs 7.5 per liter, including taxes.