State-owned Oil and Natural Gas Corporation's (ONGC) fuel subsidy bill will increase nearly 15 per cent to Rs 3,019 crore in the second quarter this financial year.
State-owned fuel retailers IndianOil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) together lost about Rs 11,295 crore in revenues on selling diesel, domestic LPG and kerosene below cost of production in July-September quarter, an official said here.
"Of this under recovery, upstream companies like ONGC, Oil India and Gail India will bear one-third," official added.
According to this subsidy-sharing formula, ONGC will chip in with Rs 3,019 crore by way of discount on crude oil it sells to IOC, BPCL and HPCL.
The subsidy outgo of ONGC will be Rs 2,630 crore higher than in the second quarter of last financial year.
The official said OIL will pay Rs 399 crore in subsidy during the second quarter of this financial year and GAIL Rs 346 crore.
Of the Rs 3,765 crore upstream subsidy contribution, IOC will get Rs 2,135 crore, HPCL Rs 808 crore and BPCL Rs 821 crore.
While, petrol price was free from government control in June, state oil firms continue to sell diesel, domestic LPG and kerosene at government dictated price which is substantially lower than cost of production.
IOC, BPCL and HPCL currently lose Rs 2.01 per litre on diesel, Rs 15.52 per litre on kerosene and Rs 188.47 per cylinder on LPG.
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