Government controls the pump prices of four petroleum products comprising of petrol, diesel, and kerosene, sold by fare-price shops, and cooking gas, sold via the three firms.
Letters related to full and final bonds for the previous fiscal year have been given to the three oil firms. While IOC has received bonds worth INR62 billion, HPCL and BPCL have obtained bonds of INR20 billion and INR21 billion, respectively, for the last quarter of 2008-09, an official in the oil ministry said.
According to the oil industry, HPCL may obtain some additional aid in the form of upstream discount to close the fiscal year in profit. The oil ministry official said that Oil and Natural Gas Corporation Limited (ONGC) and Oil India Limited may be asked to contribute around INR10 billion to the oil marketing firms in distress.
The three public sector companies, finalizing their annual results for 2008-09, were waiting for the oil bonds to factor them in their balance sheets.
The three public sector oil companies lost about INR103 billion in 2008-09 by selling the four fuels lower than the cost price. The government has issued oil bonds worth INR61 billion to the three firms till now. They have also received discounts worth INR320 billion from ONGC, IOC and GAIL (India) Limited on the buying of raw materials such as crude oil and liquefied petroleum gas (LPG).
