Monday, 10 August 2015

Subsidy Sharing Mechanism

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that at present, the Public Sector Oil Marketing Companies (OMCs) incur under-recovery on sale of PDS Kerosene and Subsidized Domestic LPG only.  For the year 2015-16, the burden sharing mechanism is as under:
  1. The Government has approved budgetary support for PDS Kerosene under-recovery at a rate of Rs. 12/Litre and the remaining under-recovery will be borne by the upstream companies.

  1. The Government has approved a fixed subsidy of Rs. 18/kg under the Direct Benefit Transfer for Domestic LPG.

The details of cash assistance provided by the Government to OMCs in the first quarter of 2015-16 are as under:
(Rs. Crore)

IOCL
BPCL
HPCL
Total
(i)                 PDS Kerosene




Cash assistance by the Government
1733
404
451
2588
(ii)               Domestic LPG (DBTL)




Total DBTL subsidy for Apr-Jun’2015
2506
1155
1193
4854

 Courtesy:pib.nic.in

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