Rs. 28,789 Crore Subsidy Given on Petroleum Products During 2009-10

Rs. 28,789 Crore Subsidy Given on Petroleum Products During 2009-10

The amount of subsidy approved by the Government on different petroleum products in respect of the year 2009-10 (prior to decontrol) is Rs. 28,789 crore. The Total Under Recoveries of the state run Oil Marketing Companies in 2009-10 have, however, been Rs. 46,051 crore. The Total Under Recoveries in F.Y. 2010-11, [based on average crude oil price of Indian basket at US$75 per barrel] was expected to be Rs. 72,000 crore before  the revision of price on 26.06.2010. With the revision, it is expected to be about Rs. 53,500 crore. The Under Recoveries will go up further in case the average price of India baseket of crude oil rises. The amount of subsidy to be paid by the Government subsequent to petrol price decontrol effected on 25.06.2010 is not ascertainable as yet, and shall only be known during the course of the year.

The detail of the amount of resources mobilised by the Centre through taxes on petroleum products for the financial year 2009-10 are as follows:

The net revenue loss to Government of India would depend upon the quantum of reduction of taxes and the actual subsidy level, apart from the quantum of total under recoveries suffered by the Oil Marketing Companies, which will in turn be dependent on the crude oil prices in international market.

This information was given by the Minister of State for Finance, Shri Namo NarainMeena in written reply to an Unstarred Question in Rajya Sabha today.