Written by: ENS Economic Bureau
2 min readNew DelhiDec 13, 2013 02:46 AM IST
First published on: Dec 13, 2013 at 02:46 AM IST
Oil marketing companies including Bharat Petroleum,Hindustan Petroleum and Indian Oil are set to get Rs 9,000 crore from the government for under-recoveries after the Lok Sabha on Thursday approved the second supplementary demand for grants for additional spending of Rs 18,594.27 crore by the Centre in 2013-14.
But the net cash outgo,or actual spending is of Rs 13,126.93 crore while the balance Rs 5,466.25 crore will be met with internal savings and receipts.
Proposal involving net cash outgo will not result in any significant variation in deficit projected in Budget Estimates 2013-2014, according to the document. The Centre hopes to control its fiscal deficit at 4.8 per cent of the GDP in FY14.
With the oil subsidy expected to touch Rs 1.47 lakh crore this fiscal,the lions share from the additional funds amounting to Rs 10,336 crore has been sought for the ministry of petroleum for payments to oil marketing companies and meeting the establishment related expenditure of the Petroleum Regulatory Board. Of this,OMCs will be given Rs 9,000 crore to meet under recoveries while Rs 1,336 crore has been set aside as direct transfer of cash subsidy to LPG consumers.
The Budget 2013-14 had allocated just Rs 65,000 crore for oil subsidy of which Rs 45,000 crore was released as subsidy payments for the last fiscal.
IOC asks govt to hike diesel,LPG prices
New Delhi: Reeling under revenue losses of nearly Rs 32,000 crore,Indian Oil Corporation IOC has asked the petroleum ministry to lighten its burden by jacking up prices of kerosene,diesel and domestic LPG cylinders by Rs 50 in total.
IOC chairman RS Butola has written to petroleum secretary Vivek Rae saying while mounting revenue losses have adversely impacted the companys liquidity position,the retailer is also contending with several other costs amounting to Rs 7,500 crore for which they are not compensated.
Under-recoveries are computed in accordance with a formula established at the time of dismantling of Administered Price Mechanism. This mechanism does not recognise several costs which have added or escalated over the years, Butola wrote to Rae. Priyadarshi Siddhanta
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