OMCs demands interest on the held back compensation

Posted By: Religare
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OMCs demands interest on the held back compensation
The delay in the payment of the approved subsidy is causing the state-run oil marketing firms to lose thousands of crores.

As a result, these companies are now demanding the interest to be paid on the held back amount, from the government.

Meanwhile, as per the officials of these companies, the transfer of the compensation of Rs. 15,000 crore for the first quarter from the government, would happen by the end of the current fiscal.

The compensation is being made as the OMCs such as Indian Oil (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) sell fuels like diesel, kerosene and cooking gas at a lower rate as compared to the market. As a result they incur heavy losses in their revenue.

Read more about: oil and gas, interest, ioc, hpcl, bpcl
Story first published: Tuesday, August 16, 2011, 13:31 [IST]
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