P Chidambaram Pegs Fuel Subsidy for Current Fiscal at 20,000 Cr


P Chidambaram Pegs Fuel Subsidy for Current Fiscal at Rs.20,000 Cr

New Delhi: A day after agreeing to dole out a record 100,000 crore in fuel subsidy for 2012-13, Finance Minister P Chidambaram said cash payouts to oil firms this fiscal will be just 20,000 crore.

At a meeting called by Prime Minister Manmohan Singh, the Finance Minister agreed to give an additional 45,000 crore on top of the 55,000 crore already paid to oil firms for selling diesel, cooking gas (LPG) and kerosene at government-controlled rates.

"We have done our sums and this 45,000 crore is being given yesterday on account but we do not expect any more claims from the Ministry of Petroleum and Natural Gas for 2012-13," Chidambaram told reporters.

State fuel retailers had lost 161,029 crore in revenues on selling diesel, domestic LPG and kerosene at government controlled rates which are way below market price.

With yesterday's 45,000 crore, the government has committed to make good 100,000 crore out of this.

Another 60,000 crore will be chipped in by upstream firms like ONGC.

"In fact there (Oil Ministry's) own number indicated 1,61,000 crore (of under-recovery or revenue loss) and if you take note of the fact that we gave them 55,000 crore earlier and 45,000 crore yesterday, that takes care of 100,100 crore and 60,000 crore (would) come from the upstream companies so thats take care of it," he said.

The additional 45,000 crore payment will come out of 65,000 crore budget for fuel subsidy in the current fiscal, leaving just 20,000 crore.

Also, upstream firms will be expected to chip in 60,000 crore, equal to what they did in 2012-13.

"Now for this year the budgeted (fuel subsidy is) 65,000. We still have 20,000 crore (after paying 45,000 crore) and another 60,000 crore will come from upstream companies," Chidambaram said.

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Source: PTI