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ONGC pays INR 272,721 Crore in fuel subsidy

State-owned Oil and Natural Gas Corp (ONGC) has paid a whopping INR 272,721 crore in fuel subsidy over the past 11 years, denting its profitability. India subsidises diesel, LPG and kerosene prices. The subsidy burden is shared between the government and upstream oil and gas producers like ONGC and Oil India Ltd. In an investor presentation after announcing financial results for 2013-14 fiscal, ONGC said it has paid subsidy of INR 272,721 crore since FY'04 but for which its net profit should have been higher by INR 157,001 crore.

What started with a payout of INR 2,690 crore in 2003-04 has swelled to a record INR 56,384 crore in the financial year ending 31.03.2014 2014. Upstream companies share the subsidy burden by way of giving discounts on crude oil they sell to state-run refiners and marketers.

Source-On Request