NEW DELHI: India's state-backed oil producers Oil and Natural Gas Corp Ltd and Oil India Ltd may be exempt from paying subsidies to fuel retailers in the March quarter, a source familiar with the plan said on Friday.
India regulates retail prices of liquefied petroleum gas and kerosene to keep prices under check, with producers like ONGC and Oil India selling crude and related products to fuel retailers at a hefty discount to partly compensate for the losses.
In addition, the oil ministry has asked the federal finance ministry for a 50 billion rupees ($798.7 million) subsidy for the quarter ended March 31, said the government source, who asked not to be named as he is not authorised to speak to the media.
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