Oil cos to get Rs 12,000-cr cash before March

State-run oil marketing companies will receive Rs 12,000 crore in cash before March 31 to make up for losses they incurred by selling fuel below cost and save them from slipping into red in the third quarter,a petroleum ministry official said.

Indian Oil Corp (IOC),Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) currently sell petrol at a loss of Rs 3.06 a litre,diesel at Rs 1.56 per litre,kerosene at Rs 17.23 per litre and LPG at a discount of Rs 299.01 per cylinder.

“We have had exhaustive discussions with the Ministry of Finance. They (Finance Ministry) have promised Rs 12,000 crore in cash,which will be provided in the next supplementary grant. They have already issued the letter promising this money so that the third quarter results can be finalised by the oil marketing companies,” Additional Secretary in the Ministry of Petroleum and Natural Gas,S Sundareshan said.