The government has sanctioned Rs 5,085 crore in oil subsidy for the December quarter, less than one-third of the revenue lost on LPG and kerosene sales. A total of Rs 15,981 crore in revenue was lost by fuel retailers on selling PDS kerosene and domestic LPG at government-controlled rates in October-December. Of this, the Finance Ministry issued a letter providing for less than one-third of this as cash subsidy, official sources said, according to news reports. Upstream firms will not pay any subsidy in October-December and final adjustments will be done in the fourth quarter; in the third quarter, the retailers will have to bear these losses on their books.
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