NEW DELHI: International oil prices have fallen to multi-year lows and the government can reduce the oil subsidy law by more than 60% in the current fiscal.

Currently, the government controls diesel, domestic LPG and kerosene and sets prices below cost. The resulting losses to oil companies can be made up through cash subsidies and discounts to upstream oil manufacturers such as ONGC.

In 2013-14, the government provided Rs 707.72 billion to upstream oil companies in the form of cash subsidies. The company’s revenue stood at Rs 670,214 crore.

With oil prices falling to a four-year low of below 84 barrels per US dollar, diesel, domestic cooking gas (LPG) kerosene are being sold at prices below the cost of imports, leading to weak economic recovery or loss of revenues (about Rs 86,080)). This financial.

According to previous financial, industrial and government sources, this is less than Rs 139, 869 crore total unrecovered.

According to sources, the recovery gap for the first quarter (April) to June) was Rs 286.91 billion. This was mainly achieved through Rs 1,100 1 crore cash subsidy from the government and Rs 1,554.7 from Oil and Natural Gas Corporation of India (ONGC), Oil India Limited (OIL) and GAIL. The remaining Rs 214.4 euro crore was absorbed by fuel retailers (IOC, BPCL and HPCL together.

Recovery gap is estimated at Rs 211.98 crore in Q2, of which diesel vehicles accounted for Rs 28.48 crore as against Rs 28.48 crore in the same period last year. 90.37 crore in June. LPG recovery gap was 695 Rs. 752.4.4 crore billion in Q1) and LPG recovery gap was 114 Rs. 121.29 crore in Q1).

Last month’s diesel recovery shortfall actually gave fuel retailers a profit of more than Rs 2 liters per liter, the most consumed fuel in this country in 2014-15 The overall recovery shortfall for the fiscal year will be: rupees just 12, 189 million rupees.

According to sources, the government is yet to consider cash subsidies and upstream equity for the second quarter.

While the government relaxed or eased petrol price controls in June 2010 monthly, diesel prices have risen by 50% paisa per month since 2013 year 1 since monthly. The sharp decline in international oil prices has helped eliminate the lack or loss of diesel recovery.

Currently, oil companies are making a profit of Rs 2.25-2.50 per liter of diesel. This is expected to be passed on to consumers. Oil companies will lose Rs 31.22 per liter of kerosene and Rs 404.64 per 14.2 kg LPG cylinder.

The government provided a cash subsidy of Rs 10,000 crore in 2012-13 when the recovery gap reached an all-time high of Rs 1,610.29 billion, sources said. Last year, it provided Rs 835 billion.

Upstream companies contributed Rs 600 billion in 2012-13 and Rs 550 billion in 2011-12.