After deregulating petrol price, the government is now rejigging the formula for apportioning subsidy burden. As per a petroleum ministry proposal under North Block s consideration, the government would bear two-thirds of the estimated subsidy requirement in a financial year, while upstream crude oil producers and downstream fuel retailers between them would bear the rest. We want the government to compensate for two-thirds of the under-recovery (losses of retailers due to selling fuel below cost), petroleum secretary S Sundareshan told FE. The remaining would be borne by upstream firms ONGC, Gail India and Oil India along with downstream firms HPCL, IOC ...
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30th July 2010
Oil ministry wants govt to shoulder 66% of subsidy
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