Finance Ministry fixes kerosene subsidy at Rs 12 per litre

The Finance Ministry on Monday sanctioned Rs 1,300.42 crore kerosene subsidy for the first quarter.

The ministry will pay state-owned fuel retailers Rs 1,300 crore cash and the same on LPG will be decided later.

News agency PTI reported that out of this, Rs 878.84 crore will be paid to Indian Oil Corporation (IOC), while Rs 203.33 crore will be given to Bharat Petroleum Corporation (BPCL). Hindustan Petroleum Corporation (HPCL) will receive Rs 218.25 crore.

Reportedly, Kerosene through Public Distribution System (PDS) is sold at Rs 14.96 per litre while the actual cost is Rs 33.47.

A senior official told PTI that for domestic cooking gas LPG, the government has decided to fully bear the under-recovery.

The 2015-16 budget has provided for Rs 22,000 crore towards LPG subsidy and another Rs 8,000 crore on kerosene.

(Image: Indiatimes)