India's oil minister asks for Rs1.05 trillion in fuel subsidy

India’s Ministry of Petroleum and Natural Gas has submitted a request to the Finance Ministry for Rs1.05 trillion (US$19.0 billion) to cover the fuel subsidy in the current fiscal year 2012-13, Minister of State for Finance Namo Narain Meena said.
Meena told the lower house of parliament that “An amount of Rs105,252 crore (Rs1.05 trillion) has been sought by the Ministry of Petroleum and Natural Gas at the time of revised estimates 2012-13 for compensation of oil marketing companies in respect of under recovery on sale of the sensitive oil products.”
The country’s public sector oil marketing companies are expected to incur Rs1.63 trillion (US$29.6 billion) in revenue losses during this fiscal year for selling diesel fuel, domestic cooking gas and kerosene at government-controlled rates.
According to Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi, out of Rs855.86 billion (US$15.5 billion) in revenue losses incurred by the public sector oil marketing companies on fuel sales from April to September 2012, the government has committed a partial compensation of Rs300 million (US$5.4 million). (November 24, 2012)