Minister: India May Revise Oil Major ONGC's Subsidy Sharing Structure



Reuters

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)

 



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

RELATED COMPANIES