India to provide INR80 billion in subsidies to oil companies in first quarter

The Indian government has agreed to provide subsidies totaling INR80 billion (USD1.28 billion) to state-owned oil companies to help them to cover losses incurred in the first quarter this year for selling diesel and cooking fuel at less than market price, a local news agency reported.
The Ministry of Finance has decided to award cash subsidies to Indian Oil Corp., Bharat Petroleum Corp., Ltd, and Hindustan Petroleum Corp., Ltd. in order to aid their finances during the quarter ending June 2013.
The oil companies sold diesel fuel, LPG, and kerosene below the actual price, thereby suffering losses worth INR255.8 billion (USD4.08 billion) in the April-June period.
Officials stated that out of this total amount, the finance ministry would contribute INR80 billion (USD1.28 billion), while the oil ministry has agreed to contribute INR114.51 billion (USD1.83 billion).
The cash subsidy amount will be divided among the three firms. IOC will get INR42.6 billion (USD679.6 million), BPCL INR19.1 billion (USD304.7 million) and HPCL will be awarded INR18.2 billion (USD290 million) for the quarter.
(August 9, 2013)