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Reimburse or See Petrol Price Hike: Ministry

  • The Petroleum Ministry has stepped up pressure on the Finance Ministry to reimburse the losses incurred by public sector oil companies for selling petroleum products below cost.If not compensated, the companies will be left with no option but to increase fuel prices, particularly petrol — which has been deregulated.

  • The total revenue loss to be incurred by the oil marketing companies is estimated to be Rs 1,40,000 crore for the current fiscal. Of this, the Ministry of Finance has given Rs 45,000 crore and upstream contribution has been about Rs 53,000 crore.“We have requested the Finance Ministry to give the remaining amount (Rs 42,000 crore),” the Petroleum Secretary, Mr G.C. Chaturvedi, said.The Petroleum Ministry has also requested the Finance Ministry to offset the additional cess burden which the upstream companies — ONGC and Oil India — will incur by reducing the subsidy burden on these companies.

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