MUMBAI, Dec 3 (Reuters) – India is considering reworking the subsidy sharing formula for Oil and Natural Gas Corp, Oil Minister Dharmendra Pradhan said on Wednesday, in a bid to lower its discount burden and boost the state-run oil company's profits.
Pradhan did not give details in a written statement while responding to a lawmaker's query.
The country's largest oil and gas explorer, nearly 69 percent owned by the government, has seen profits decline due to the sale of crude oil to state-run refiners at discounted rates.
India does not regulate prices of gasoline and diesel any longer, but state-owned companies are forced to discount prices of other common fuels such as kerosene and cooking gas to keep a lid on retail prices.
Any move to lessen its discount burden will be favoured by investors as the government plans to sell a 5 percent stake, worth about $2.5 billion, in ONGC as part of its divestment programme.
Shares in ONGC ended 3 percent higher at 371.45 rupees, while the broader NSE index rose 0.15 percent.
(Reporting by Nigam Prusty in New Delhi; Writing by Aman Shah; Editing by Biju Dwarakanath)
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