India's upstream oil cos Q2 subsidy at $2.8 bln-source

Last Updated: Thu, Nov 08, 2012 10:32 hrs

NEW DELHI, Nov 7 (Reuters) - India's state-run upstream oil companies are likely to bear a total subsidy burden of 151.08 billion rupees ($2.8 billion) for the September quarter, a government source said, to compensate state oil marketing companies for losses on fuel sales.

State producer Oil India and gas utility GAIL , which have already reported quarterly earnings, have provided discounts of 20.8 billion rupees and 785.7 million rupees respectively. Explorer Oil and Natural Gas Corp will detail its quarterly earnings on Thursday.

India's federal government fixes the retail prices of liquefied petroleum gas, kerosene and diesel to protect the poor, leading to revenue losses at Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp .

Upstream companies had borne 150.61 billion rupees as their share of subsidy in the April-June quarter, the source, who declined to be identified as he was not authorised to speak to the media, said.

India's oil ministry has separately sought compensation of 554.17 billion rupees from the finance ministry for the oil companies for the first six months of the current financial year, the source said. ($1 = 54.44 rupees) (Reporting by Nidhi Verma; Editing by G.Ram Mohan)

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