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India oil ministry sees 2015/16 upstream subsidy at 50-60 bln rupees

India expects a subsidy burden of 50 billion-60 billion rupees ($788 million-$946 million) for state-run oil and gas producers this fiscal year if world oil prices stay at current levels, a senior oil ministry source said on Monday.

Upstream companies like ONGC, Oil India and GAIL (India) typically sell crude and fuels like cooking gas at discounted rates to partly compensate retailers for losses they incur on selling fuels at government-set rates. But the government is now planning to ease the subsidy burden.

Sources had told Reuters earlier that the oil ministry had set a new subsidy formula for the April-June quarter that would exempt upstream companies from discounting sales of crude oil and refined products if global oil pricesare up to $60 per barrel.

https://www.khabarindia.in/india-oil-ministry-sees-201516-upstream-subsidy-at-50-60-bln-rupees/