Oil Marketing Companies
INDUSTRY/ECONOMY Finance Ministry to verify OMCs’ losses before deciding on subsidy Nov 4, 2012 The Finance Ministry in a study will verify the claims of losses by state-owned oil companies on selling diesel, LPG and kerosene below cost price and decide the quantum of subsidy for 2012-13 based on the report. “The Finance Ministry in consultation with the Oil Ministry is conducting a study on the under-recoveries of the OMCs. The report is likely by November 15,” a senior government official said. The government compensates three OMCs — Indian Oil, Hindustan Petroleum and Bharat Petroleum — for selling diesel, cooking gas (LPG) and kerosene for under-recoveries, which is the difference between the cost price and selling price. “We will decide on the quantum of subsidy to OMCs based on this study,” the official added. Last week, Petroleum Minister Veerappa Moily had said that his ministry will seek over Rs 1,00,000 crore from the Finance Ministry this fisca...