ONGC says Q2 subsidy jumps from a year ago

Source : REUTERS
Last Updated: Thu, Nov 08, 2012 12:30 hrs
An employee measures diesel in a tanker before unloading at a fuel station in Kolkata

State-run producer Oil & Natural Gas Corp has provided for subsidy of 123.30 billion rupees for the September quarter in the form of discounts to state oil marketing companies, more than double the provision in the same quarter a year earlier.

ONGC does not fully benefit from rising crude prices because India caps prices of petroleum products such as diesel, cooking gas and kerosene. Producers such as ONGC share the cost of the subsidies by selling crude to refineries at a discount.

As a result, its net realisation after discount was $46.8 per barrel, down from $82.62 a barrel a year ago, ONGC said.

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