Government to Persist with Subsidy Sharing Formula

摘要

Despite protesting noises from oil companies, indications are that the Government is unlikely to bring any major change in the subsidy sharing formula, where the burden is shared by the public sector upstream companies like ONGC. Oil India, Government, oil marketing companies, and consumers through minimal price increase. In 2003-04, the subsidy sharing mechanism put in place by the Petroleum Ministry prescribed for one-third of the under recoveries of OMCs to be borne by the upstream companies. This was broadly followed till 2006-07 when upstream contribution increased to 41.5 per cent and 2010-11 when it was 38.75 per cent.