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Subsidy affects revenue of Indian oil firms
By agencies
|
Tuesday, 10 May 2005, 19:30 IST
NEW DELHI: India's state-run oil companies incurred a revenue loss of 
203 billion for the last financial year ended March 31 due to the subsidy burden imposed by the government, Indian Oil Corp. Chairman Sarthak Behuria today said.
"In the rapidly unfolding scene and more particularly of late, the oil marketing companies are unable to recover even the purchase price of products, thus losing on sales," he said at an industry seminar.
Behuria said the revenue loss due to subsidies is estimated at 58.6 billion in the April 1 to May 15 period.
Petroleum Secretary Sushil Tripathi recently said the government oil companies are estimated to incur a combined revenue loss of 428 billion in the current financial year that began April 1, due to the subsidies on kerosene, LPG and transport fuel.
Indian oil companies haven't raised fuel prices since Nov. 16 despite rising global crude oil prices as the government prevented such a move on fears it may trigger inflation.
203 billion for the last financial year ended March 31 due to the subsidy burden imposed by the government, Indian Oil Corp. Chairman Sarthak Behuria today said.
"In the rapidly unfolding scene and more particularly of late, the oil marketing companies are unable to recover even the purchase price of products, thus losing on sales," he said at an industry seminar.
Behuria said the revenue loss due to subsidies is estimated at 58.6 billion in the April 1 to May 15 period.
Petroleum Secretary Sushil Tripathi recently said the government oil companies are estimated to incur a combined revenue loss of 428 billion in the current financial year that began April 1, due to the subsidies on kerosene, LPG and transport fuel.
Indian oil companies haven't raised fuel prices since Nov. 16 despite rising global crude oil prices as the government prevented such a move on fears it may trigger inflation.