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Oil Min seeks Rs400 bln extra cash compensation from FM-news18032012


The oil ministry has sought an additional cash compensation of Rs400 billion from the finance ministry (FM) to partially cover revenue losses of state-run companies that sell diesel, kerosene, and cooking gas at state-set subsidised rates, the oil secretary said.


G.C. Chaturvedi said the oil ministry has also sought Rs50 billion as compensation for revenue losses incurred on retail sales of petrol during the current fiscal year to March. Despite being deregulated, petrol prices have not been raised since December.

The FM has so far agreed to given a cash subsidy of Rs450 billion to state-run oil companies.
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