IOC expects to receive Rs. 11000 crores from government

Posted By: Religare
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IOC expects to receive Rs 11k crores from government
In order to match demand-supply gap in fuel and cooking gas prices government provides subsidy to state-run oil marketing company to sell auto and cooking fuel at controlled rates which are often below cost. But it partly compensates them for their revenue losses while balance subsidy burden is shared between public sector upstream companies and fuel retailers.

This fiscal government agreed to give Rs. 20000 crores as final settlement. Indian Oil Corporation expects to receive subsidy for losses it made by selling diesel, kerosene and cooking gas at lower price of amount Rs.11000 crores by June end while BPCL had to get Rs 4,595 crore and HPCL, Rs 4,379 crore.

"We have got a letter from the government stating their commitment to compensate us and are expecting the actual cash transfer of Rs 11,000 crore to happen in the next 2-3 weeks, latest by June end," Indian Oil Corp (IOC) director finance PK Goyal said.

Read more about: ioc, oil and gas, bse, nse
Story first published: Friday, June 10, 2011, 9:30 [IST]
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